Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 1 of 78 PageID #:1992 UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION ROBERT L. BREUDER, ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) Plaintiff, v. BOARD OF TRUSTEES OF COMMUNITY COLLEGE DISTRICT NO. 502, DUPAGE COUNTY, ILLINOIS, an Illinois body politic and corporate, KATHY HAMILTON in her official and individual capacity, DEANNE MAZZOCHI in her official and individual capacity, FRANK NAPOLITANO in his official and individual capacity, and CHARLES BERNSTEIN in his official and individual capacity, Defendants. No. 1:15 cv 9323 Hon. Andrea R. Wood DEFENDANT BOARD OF TRUSTEES’ ANSWER AND AFFIRMATIVE DEFENSES TO PLAINTIFF’S COMPLAINT AND COUNTERCLAIMS Defendant Board of Trustees of Community College District No. 502, by its attorneys, Drinker Biddle & Reath LLP, for its Answer and Affirmative Defenses to Plaintiff Robert L. Breuder’s Complaint, states as follows: NATURE OF ACTION 1. This is an action for damages and equitable relief arising under 42 U.S.C. § 1983, the Fourteenth Amendment to the United States Constitution, and Illinois common law. From January 1, 2009 until his termination on October 20, 2015, Plaintiff Robert L. Breuder, Ph.D. (“Dr. Breuder”), served as President of the College of DuPage, located in Glen Ellyn, Illinois pursuant to a valid and enforceable employment contract and related addenda/agreements. Dr. Breuder was deprived of his civil and constitutional rights when Defendants wrongfully terminated his employment in violation of his contracts, without due process, and based on false charges of misconduct that were asserted by the individual defendants only to further their personal interests and political agendas. These actions have resulted in substantial harm to Dr. Breuder, including the loss of his employment and other benefits conferred by his employment agreements, irreparable damage to his personal and professional reputation, loss of various 1 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 2 of 78 PageID #:1993 professional opportunities, and acute emotional distress. ANSWER: Defendant admits that Plaintiff purports to bring this action for the relief identified. Defendant further admits that from on or about January 1, 2009, until his termination on or about October 20, 2015, Plaintiff served as President of the College of DuPage. Defendant denies the remaining allegations in this paragraph. JURISDICTION AND VENUE 2. Jurisdiction is proper in this Court pursuant to 28 U.S.C. §§ 1331 and 1343, as this action arises under the laws of the United States, specifically 42 U.S.C. § 1983 and the Fourteenth Amendment to the United States Constitution. ANSWER: Defendant states that the allegations in this paragraph constitute legal conclusions for which no answer is required. To the extent an answer is required, Defendant admits that jurisdiction is proper in this Court. 3. This Court has supplemental jurisdiction over Dr. Breuder’s state law claims pursuant to 28 U.S.C § 1367. ANSWER: Defendant states that the allegations in this paragraph constitute legal conclusions for which no answer is required. To the extent an answer is required, Defendant admits that this Court currently has jurisdiction over Dr. Breuder’s state law claims but Defendant reserves its rights to contest the Court’s jurisdiction over Dr. Breuder’s state law claims based on events that would impact that jurisdiction in the future. 4. Venue is proper under 42 U.S.C. § 2000e-5(f)(3) and 28 U.S.C. § 1391(b) since the events giving rise to the claims asserted herein occurred, and the Defendants conduct business and/or reside, within this District. ANSWER: Defendant states that the allegations in this paragraph constitute legal conclusions for which no answer is required. To the extent an answer is required, Defendant admits that venue is proper in this District. 2 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 3 of 78 PageID #:1994 THE PARTIES 5. Dr. Breuder is a resident of the Village of Lake Barrington, Illinois. Dr. Breuder served as President of the College of DuPage, located in Glen Ellyn, Illinois, from January 1, 2009 until his wrongful termination on October 20, 2015. Dr. Breuder has served as a college president for thirty-five years. The College of DuPage was his third presidential appointment. ANSWER: Defendant admits that Plaintiff served as President of the College of DuPage from on or about January 1, 2009, through on or about October 20, 2015. Defendant denies that Breuder was wrongfully terminated. Defendant lacks sufficient knowledge to form a belief as to the truth of the remaining allegations in this paragraph, and these allegations are therefore denied. 6. Defendant Board of Trustees of Community College District No. 502, DuPage County, Illinois (“Board”) is a body politic and corporate organized under the Illinois Public Community Colleges Act, 110 ILCS 805 et seq., which has offices and does business in Glen Ellyn, Illinois. The Board consists of seven duly elected and acting trustees. Those trustees include Kathy Hamilton, Deanne Mazzochi, Frank Napolitano, Charles Bernstein, Erin Birt, Dianne McGuire, and Joseph Wozniak. ANSWER: Defendant denies that Kathy Hamilton, Erin Birt, or Dianne McGuire are trustees of the College of DuPage. Defendant admits the remaining allegations in this paragraph. 7. Defendant Kathy Hamilton (“Hamilton”), named in her official and individual capacity, is a resident of the Village of Hinsdale, Illinois, and currently serves as Chairman of the Board of Trustees of Community College District No. 502, DuPage County, Illinois. ANSWER: Defendant denies that Kathy Hamilton currently serves as Chairman of the Board of Trustees. Defendant lacks sufficient knowledge to form a belief as to the truth of the remaining allegations in this paragraph, and these allegations are therefore denied. 8. Defendant Deanne Mazzochi (“Mazzochi”), named in her official and individual capacity, is a resident of the Village of Elmhurst, Illinois, and currently serves as Vice Chairman of the Board of Trustees of Community College District No. 502, DuPage County, Illinois. ANSWER: Defendant denies that Deanne Mazzochi currently serves as Vice Chairman of the Board of Trustees. Defendant admits the remaining allegations in this paragraph. 3 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 4 of 78 PageID #:1995 9. Defendant Frank Napolitano (“Napolitano”), named in his official and individual capacity, is a resident of the Village of Bloomingdale, Illinois, and currently serves as Secretary of the Board of Trustees of Community College District No. 502, DuPage County, Illinois. ANSWER: Defendant denies that Frank Napolitano currently serves as Secretary of the Board of Trustees. Defendant admits the remaining allegations in this paragraph. 10. Defendant Charles Bernstein (“Bernstein”), named in his official and individual capacity, is a resident of the Village of Wheaton, Illinois, and currently serves as a Trustee of the Board of Trustees of Community College District No. 502, DuPage County, Illinois. ANSWER: Defendant admits the allegations in this paragraph. FACTUAL BACKGROUND Dr. Breuder’s Employment Contract with the College of DuPage 11. On November 18, 2008, the Board and Dr. Breuder entered into an employment contract which provided that Dr. Breuder would serve as President of the College of DuPage from January 1, 2009 to June 30, 2012 (hereinafter, “Employment Contract”). A true and correct copy of Dr. Breuder’s Employment Contract, including addenda one to three of that contract, is attached hereto as Exhibit A. ANSWER: Defendant admits that Plaintiff contends that Exhibit A is an employment agreement between the College of DuPage and Plaintiff dated November 18, 2008, and that the document states a term from January 1, 2009, to June 30, 2012. Defendant lacks sufficient knowledge or information to admit or deny the authenticity of Exhibit A and therefore denies that allegation. Defendant denies the remaining allegations in this paragraph to the extent they summarize the contents of the exhibit. The exhibit is a written document that speaks for itself. 12. At various times throughout Dr. Breuder’s employment with the College of DuPage, the Board approved the extension of Dr. Breuder’s Employment Contract. On March 7, 2014, Dr. Breuder was informed by then-Chairman Erin Birt that the majority of the Board had approved the extension of his Employment Contract to June 30, 2019. ANSWER: Defendant admits that Plaintiff’s employment with the College of DuPage was extended on more than one occasion. Defendant lacks sufficient knowledge to form a belief as to the truth of the remaining allegations in this paragraph, and these allegations are therefore denied. 4 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 5 of 78 PageID #:1996 13. Dr. Breuder’s Employment Contract is a duly authorized and enforceable agreement under the Illinois Public Community Colleges Act (the “Act”). Under Section 3-26 of the Act, the Board has the power “[t]o make appointments and fix the salaries of a chief administrative officer, who shall be the executive officer of the board, other administrative personnel and all teachers.” 110 ILCS 805/3-26; see also 110 ILCS 805/3-21. ANSWER: Defendant denies the allegations in this paragraph to the extent they selectively quote or characterize provisions of the Public Community Colleges Act. The Act speaks for itself. Defendant states that the remaining allegations in this paragraph constitute legal conclusions for which no answer is required. To the extent an answer is required, Defendant denies the remaining allegations in this paragraph. 14. Under the authority granted to the Board by the Act, it has been the custom and practice of the Board, since at least the mid-1990s, to enter into successive multi-year contracts with the chief administrative officers (i.e., the president) and other high-ranking administrative personnel. Since the College of DuPage was founded in 1968, five persons (including Dr. Breuder) have served as president of the College. Each president preceding Dr. Breuder served anywhere from a four to a twelve-year term under consecutive multi-year employment contracts, which included, on information and belief, automatic rollover provisions. ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph, and these allegations are therefore denied. 15. In accordance with the Board’s authority under the Act, and the aforementioned customs and practices, Dr. Breuder’s Employment Contract, as extended on March 7, 2014, conferred and established in Dr. Breuder a property interest in his continued employment as President of the College of DuPage from January 1, 2009 through June 30, 2019. Thus, the Board could not terminate Dr. Breuder’s employment without due process or in contravention of the terms of his Employment Contract. ANSWER: Defendant states that the allegation in this paragraph that Plaintiff had a property interest in his continued employment constitutes a legal conclusion for which no answer is required. To the extent an answer is required, Defendant denies the allegations. Defendant denies the remaining allegations in this paragraph. 5 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 6 of 78 PageID #:1997 16. Section G of the Employment Contract sets forth the permissible basis upon which the Board can terminate Dr. Breuder’s employment. Section G states that absent mutual agreement, retirement, resignation, mental or physical incapacity, or death, Dr. Breuder can only be terminated for cause. Exh. A § G. Section G defines “cause” as follows: (i) the President’s material failure or refusal to perform his duties hereunder, for any reason other than mental or physical incapacity, after the President has been given at least forty-five (45) days prior written notice of such breach and a reasonable, opportunity to cure such breach; (ii) the President’s material failure to perform the reasonable and legitimate directives of the Board; (iii) misconduct by the President, outside the scope of his employment by the College hereunder, which is materially detrimental to the reputation of the Board or the College in the community; or (iv) misconduct by the President, outside the scope of his employment by the College hereunder, which is materially detrimental to the reputation of the President in the community. Id. ANSWER: Defendant denies the allegations in this paragraph to the extent that they quote or summarize the contents of Exhibit A. Exhibit A is a written document that speaks for itself. Defendant denies the remaining allegations in this paragraph. 17. Section G of the Employment Contract also sets forth specific procedures that the Board must follow in pursuing Dr. Breuder’s termination for cause. Section G.3 states: The Board’s right to terminate this Agreement for Cause pursuant to Section G.1(f) of this Agreement may be exercised by the affirmative vote of at least five (5) of the seven (7) members of the Board in favor of the President’s dismissal for Cause and the giving of written notice to the President specifying, in detail, the grounds for such termination. Upon the President’s receipt of written notice from Board pursuant to Section G.1(f), the President has the right to appear before all seven (7) members of the Board, at a meeting conducted in executive session, to discuss the breach asserted by the Board and its cure. Where the Board is terminating for cause under G.1(f)(i), and if the breach is not cured prior to the expiration of the cure period provided herein, such termination will be effective upon the expiration of such 45 day cure period and the Board’s reaffirmation of the President’s dismissal for Cause by an affirmative vote of at least five (5) of its seven (7) members. 6 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 7 of 78 PageID #:1998 Id. § G.3. ANSWER: Defendant denies the allegations in this paragraph to the extent that they quote or summarize the contents of Exhibit A. Exhibit A is a written document that speaks for itself. Defendant denies the remaining allegations in this paragraph. 18. Section G also provides a remedy in the event the Board terminates Dr. Breuder’s employment without cause. Section G.4 states: In the event of the termination of the President’s employment hereunder by the Board without Cause prior to the expiration of the then-current term of this Agreement, the President will be entitled to receive the full amount of the compensation (including the cash equivalent of the SURS contribution described above if SURS does not allow the College to make a SURS contribution) and all benefits that he would have received had this Agreement not been terminated prior to the expiration of the term of this Agreement which expires no earlier than June 30, 2012 but may be extended as provided in this Agreement. Id. § G.4. ANSWER: Defendant denies the allegations in this paragraph to the extent that they quote or summarize the contents of Exhibit A. Exhibit A is a written document that speaks for itself. Defendant denies the remaining allegations in this paragraph. 19. Similar to Dr. Breuder’s Employment Contract, Board policies applicable to the employment of administrators, including the president, provide that an administrator can only be terminated under certain circumstances. Board Policy No. 15-275 states, in relevant part: An administrator’s employment may be terminated or the administrator not reappointed by: 1. Mutual agreement of the parties. 2. Retirement or resignation of the administrator. 3. Death or mental or physical disability of the administrator which renders the administrator unable to perform his/her essential job duties with or without a reasonable accommodation. 4. A decision by the Board of the Trustees that the financial conditions of the College warrants a reduction in staff or in programs. 7 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 8 of 78 PageID #:1999 5. An overall unsatisfactory performance rating of the employee made prior to the start of the contract year on the official administrative evaluation instrument, together with the recommendation of the President. 6. For cause, including, but not limited to, violation of any College policy, procedure, rule or regulation, or commission of any unlawful act or other inappropriate or unprofessional conduct. A true and correct copy of Board Policy No. 15-275 is attached hereto as Exhibit B. ANSWER: Defendant denies the allegations in this paragraph to the extent that they selectively quote or summarize Board Policy No. 15-275. The policy is a written document that speaks for itself. Defendant denies that Board Policy No. 15-275 is attached to Plaintiff’s Complaint as Exhibit B, and denies the remaining allegations in this paragraph. Dr. Breuder’s Performance as President of the College of DuPage 20. Pursuant to the Employment Contract, Dr. Breuder assumed his official duties on January 1, 2009. While President of the College of DuPage, Dr. Breuder fully performed his duties professionally and in accordance with the terms of his Employment Contract, Board policies, and all other rules and regulations governing his position. ANSWER: Defendant admits that Plaintiff began working as President of the College of DuPage on January 1, 2009. Defendant denies the remaining allegations in this paragraph. 21. Dr. Breuder is the fifth president of the College of DuPage. The College of DuPage is the second largest provider of higher education in the State of Illinois behind the University of Illinois. The College of DuPage is the largest single campus community college in the United States outside of the State of California. Almost 30,000 students are enrolled currently at the College of DuPage. ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph, and these allegations are therefore denied. 8 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 9 of 78 PageID #:2000 22. During his tenure as President of the College of DuPage, Dr. Breuder oversaw and achieved significant improvements, advancements, and accolades for the College, specifically and without limitation: a. Dr. Breuder was instrumental in securing the passage of a $168 million capital referendum in November 2010 that enabled the College to complete renovations and new construction to enhance and modernize the campus. b. Dr. Breuder’s administration enabled the College to increase its fund balance from under $60 million to approximately $200 million during the worst recession since the Great Depression. c. Dr. Breuder facilitated the College’s receipt of approximately $25 million in grants during his presidency and helped the College’s Foundation increase its assets from under $10 million to over $15 million. d. Dr. Breuder spearheaded the completion of an approximately $550 million campus improvement program which added nearly 1.5 million square feet of enhanced and modernized educational space. e. The Illinois Community College Board reported that between fall 2010 and 2014, the College’s FTE enrollment grew by 6% while the state average for community colleges declined by 13.1 %. During that same period, the College’s headcount enrollments increased by 10.3% while the state’s average decreased by 11.1%. f. A December 2014 Community Pulse Survey showed that District 502 residents overwhelmingly considered the College to have a good image and academic reputation. g. A 2014 Noel-Levitz Student Satisfaction Inventory Survey indicated that student satisfaction was higher than reported in any previous student survey. h. A 2013 Personnel Assessment of College Environment Survey placed the College in the high Consultative Leadership Range indicating a healthy campus climate and almost tying the all-time high reported in 1999. i. Dr. Breuder conceived of and implemented an annual comprehensive strategic long-rang planning process, for which the College received the 2014 Richard Goodman Strategic Planning Award from the Association of Strategic Planning for distinction in the practices of Strategy Development, Implementation and Results. j. Dr. Breuder was directly responsible for the College’s receipt of the 2013 Illinois Council of Community Colleges Administrators Award for the development of multiple 3+1 on campus baccalaureate completion programs involving five partner universities. k. Dr. Breuder was influential in the College’s receipt of the Governor’s Award for Academic Excellence in serving veterans, making the College the first community college to 9 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 10 of 78 PageID #:2001 earn this award from the Illinois Department of Veteran Affairs. l. Dr. Breuder was instrumental in the College’s receipt of the Illinois Performance Excellence (ILPEX) Bronze Award for Commitment to Excellence as part of the College’s reaffirmation of accreditation process, making the College the sixth community college ever to earn this award. m. For each fiscal year from 2009 through 2015, the College received unqualified audit opinions, with no material weaknesses or significant issues, from an external auditor, Crowe Horwath LLP. n. The College consistently received the Distinguished Budget Presentation Award and the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association. o. Dr. Breuder helped ensure the College maintained its Aaa and AAA bond ratings, respectively, from Moody's Investor Services and Standard and Poor. p. Dr. Breuder ensured that all eligible College employees will have received an annual salary increase in excess of 3% during his tenure as President. This occurred despite one of the worst economies since the Great Depression and State funding declined to under 10% from the entitled 33%. q. The College has added dozens of new programs of study to meet dynamic community needs. r. The College has consistently been identified as one of the largest providers of online course offerings among all Illinois community colleges. s. Dr. Breuder instituted a number of diversity initiatives at the College, including the creation and implementation of the new Center for Student Diversity. t. Dr. Breuder was responsible for the creation of the Presidential and Academic Scholars Program, which dramatically increased the number of high achieving students enrolling at the College. u. Dr. Breuder successfully transformed the College’s Business and Professional Institute into a highly lucrative and effective Business Solutions Program. v. Dr. Breuder oversaw the continuation of a successful Fulbright Scholarship Program, with the Chronicle of Higher Education ranking the College as a top producer of Fulbright Scholars. w. Dr. Breuder envisioned two companion state-of-the-art facilities, the Homeland Security Education Center and Homeland Security Training Center, both of which are currently being used to train emergency first responders, including fire fighters, EMTs, and law 10 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 11 of 78 PageID #:2002 enforcement personnel. x. Dr. Breuder conceived of the Star Lake Pavilion, an outdoor venue for summertime concerts and movies that is open to the public at no cost. In its first season, thousands of community members enjoyed music/family movies under the stars. y. Dr. Breuder’s team negotiated the Pathways to Engineering Program, which guarantees eligible engineering students admission into the Engineering Program at the University of Illinois-Urbana upon graduation from the College of DuPage. ANSWER: Defendant admits that, for each fiscal year from 2009 through 2015, the College received unqualified audit opinions from Crowe Horwath LLP with no material weaknesses, as materiality was defined in those opinions. Defendant denies Plaintiff’s characterization of his job performance in this paragraph. Defendant lacks sufficient knowledge to form a belief as to the truth of the remaining allegations in this paragraph, and these allegations are therefore denied. 23. Dr. Breuder has received the following professional recognitions while President of the College: 2015 University at Albany Alumni Association Excellence Award (chosen, but later rescinded due to Defendants’ actions), 2014 CASE V CEO of the Year Award, 2013 Illinois Senate recognition for 32 years of leadership in community colleges, 2013 Florida State University College of Education Distinguished Alumni Award, 2013 National Council for Marketing and Public Relations National Pacesetter Award, 2013 Association of Community College Trustees CEO Award, Central Region, and the 2012 DuPage County Fire Chiefs Association Honorary Fire Chief. ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph, and these allegations are therefore denied. 24. Pursuant to Board Policy No. 15-210, the Board is required to evaluate the College President at the end of each fiscal year and to provide such evaluation to the College President. Over the last five years, Dr. Breuder never received a negative evaluation from the Board relating to his performance as President of the College. Dr. Breuder received no such evaluation for fiscal year 2014 or at any time prior to the events leading up to this lawsuit. ANSWER: Defendant admits that Board Policy No. 15-210 provides for evaluations of the College President to be performed at the end of each fiscal year. Defendant denies the allegations in this paragraph to the extent they quote or summarize the contents of Board Policy No. 15-210. The policy is a written document that speaks for itself. Defendant lacks sufficient knowledge to 11 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 12 of 78 PageID #:2003 form a belief as to the truth of the remaining allegations in this paragraph, and these allegations are therefore denied. The Board and Dr. Breuder Agree to an Early Termination of the Employment Contract 25. Beginning in or around late 2014, the Board and Dr. Breuder began discussions concerning Dr. Breuder’s continued service to the College of DuPage and the Board’s preference to terminate Dr. Breuder’s employment prior to June 30, 2019. ANSWER: Defendant admits the allegations in this paragraph. 26. Through December 2014 and January 2015, the Board and Dr. Breuder negotiated a fourth addendum to the Employment Contract that provided for early termination of Dr. Breuder’s employment in exchange for certain retirement benefits. ANSWER: Defendant admits the allegations in this paragraph. 27. On January 28, 2015, the Board voted on and approved by a vote of six-to-one the fourth addendum to the Employment Contract (hereinafter, the “January 2015 Agreement”). A true and correct copy of the January 2015 Agreement is attached hereto as Exhibit C. ANSWER: Defendant admits that on or about January 28, 2015, the Board of Trustees of the College of DuPage voted on and approved by a vote of six to one a fourth addendum to employment contract. Defendant denies that the fourth addendum is a valid and enforceable agreement. Defendant denies the remaining allegations in the paragraph. 28. In relevant part, the January 2015 Agreement provided that Dr. Breuder would continue to serve as President of the College of DuPage until March 30, 2016, on which date it was agreed that Dr. Breuder would retire from his post. In exchange, it was agreed that Dr. Breuder would receive a lump sum payment upon his retirement. See generally id. ANSWER: Defendant denies the allegations in this paragraph as they quote or summarize the contents of the purported employment agreement. The agreement is a written document that speaks for itself. 12 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 13 of 78 PageID #:2004 29. The January 2015 Agreement also provided that all terms of Dr. Breuder’s Employment Contract that were not expressly superseded by the January 2015 Agreement would remain in effect through March 30, 2016. Id. ¶ 4. Such terms included the termination provisions of the Employment Contract. ANSWER: Defendant denies the allegations in this paragraph as they quote or summarize the contents of the purported employment agreement. The agreement is a written document that speaks for itself. 30. The January 2015 Agreement was a duly authorized and enforceable agreement under Sections 3-26 (cited above) and 3-31 of the Act. Section 3-31 grants the Board authority “[t]o provide for or participate in provisions for insurance protection and benefits for its employees and their dependents, including but not limited to retirement annuities, medical, surgical and hospital benefits, in such types and amounts as shall be determined by the board for the purpose of aiding in securing and retaining the services of competent employees.” 110 ILCS 805/3-31; see also 110 ILCS 805/3-30. ANSWER: Defendant denies the allegations in this paragraph to the extent they quote or characterize provisions of the Public Community Colleges Act. The Act speaks for itself. Defendant denies the remaining allegations in this paragraph, including that the fourth addendum was a duly authorized and enforceable agreement under the Public Community Colleges Act or any other applicable law. 31. In accordance with the Board’s authority under the Act, the January 2015 Agreement conferred and established in Dr. Breuder a property interest in his continued employment from January 28, 2015 through March 30, 2016. The January 2015 Agreement also conferred and established in Dr. Breuder a property interest in all benefits provided for under the Agreement, including the lump sum payment to be made to Dr. Breuder upon his retirement. Thus, the Board could not terminate Dr. Breuder’s employment or rescind the benefits conferred in the January 2015 Agreement without due process or in contravention of the terms of the January 2015 Agreement and the Employment Contract. ANSWER: Defendant denies the allegations in this paragraph. 13 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 14 of 78 PageID #:2005 Defendant Hamilton Maliciously Tarnished Dr. Breuder’s Professional Reputation and Acted to Interfere With His Contractual and Constitutional Rights Solely For Personal Interests and Political Aspirations 32. Since early 2014, Defendant Hamilton has engaged in a malicious and wrongful scheme to tarnish Dr. Breuder’s professional reputation and, ultimately, to interfere with and deprive Dr. Breuder of his contractual and constitutional rights. That scheme has been motivated not by Defendant Hamilton’s official duties as an elected member of the Board, but rather by her personal interests and political agenda. ANSWER: Defendant denies the allegations in this paragraph. 33. Defendant Hamilton was elected to serve as a member of the Board in April 2013. Prior to April 2013, Defendant Hamilton never held any elected or political office, nor had any ties to the College of DuPage. Upon her election, Defendant Hamilton told Dr. Breuder and Thomas Glaser, Senior Vice President of Administration, that her motivation for running for the Board was to use the position to attain higher political office. Defendant Hamilton stated that she planned to achieve that goal by finding something wrong with the College, specifically by using her purported experience as a CPA to find irregularities in the College’s finances and spending. ANSWER: Defendant admits that Kathy Hamilton was elected to the Board of Trustees in April 2013. Defendant lacks sufficient knowledge to form a belief as to the truth of the remaining allegations in this paragraph, and these allegations are therefore denied. 34. On information and belief, throughout late-2013 and to this day, Defendant Hamilton has worked closely with her political advisor, Chris Robling, to develop a strategy to advance her personal interests and political agenda. That strategy has been focused on posturing Defendant Hamilton as a “reformist” of the College and discrediting and slandering the former Board and College administration, especially Dr. Breuder, through false claims of unprofessional and unethical conduct, mismanagement, and fraudulent and abusive spending practices. ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph, and these allegations are therefore denied. 35. In or about May 2014, Defendant Hamilton partnered with the political watchdog organization For the Good of Illinois, founded by Adam Andrzejewski, and devised a plan to use For the Good of Illinois to publicly discredit the professional and ethical conduct of the former Board and College administration. ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph, and these allegations are therefore denied. 14 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 15 of 78 PageID #:2006 36. On or about May 9, 2014, Defendant Hamilton leaked to Andrzejewski a confidential and privileged email between Dr. Breuder and the Board relating to the potential use of a $20 million state grant for a proposed Teaching and Learning Center. Defendant Hamilton knew or had been advised that the contents of this email would be sensationalized in a manner to tarnish the professional and ethical credibility of Dr. Breuder and the former Board. ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph, and these allegations are therefore denied. 37. On May 20, 2014, after receiving information about the May 9 email from Defendant Hamilton, Andrzejewski issued a Freedom of Information Act (“FOIA”) request to the College. Andrzejewski’s FOIA request sought all of Dr. Breuder’s email communications dated from May 6 to May 19, 2014. No other documentation was sought by Andrzejewski’s FOIA request. ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph, and these allegations are therefore denied. 38. On or about May 22, 2014, Defendant Hamilton invited Andrzejewski to speak at that day’s regular meeting of the Board. During the meeting, Andrzejewski publicly attacked Dr. Breuder’s credibility and ethical fulfillment of his duties as President of the College of DuPage. At the close of his remarks, Andrzejewski stated, “I challenge Dr. Breuder, please leave and do something good for the people of Illinois.” On information and belief, Defendant Hamilton knew of, agreed to, and spoke with Andrzejewski regarding his comments prior to the meeting. ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph, and these allegations are therefore denied. 39. On or about June 24, 2014, Andrzejewski received a copy of the May 9 email through his FOIA request. Andrzejewski immediately sent the email to the Chicago Tribune and also published the email on For the Good of Illinois’ website. The email was sensationalized as evidence of corruption within the College and a “seedy money grab” on the part of Dr. Breuder. On information and belief, Defendant Hamilton knew of, agreed to, or participated directly in Andrzejewski’s distribution and publication of the email. ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph, and these allegations are therefore denied. 15 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 16 of 78 PageID #:2007 40. On or around June 26, 2014, Defendant Hamilton invited Andrzejewski to speak at that day’s special meeting of the Board. During his public comments, Andrzejewski impugned Dr. Breuder and the former Board for the contents of the May 9 email, describing Dr. Breuder’s statements in the email as “disgusting” and a “concoct[ed] scheme to secure funding.” Andrzejewski further stated, “[W]e know our culture of corruption. This email spells it out and [Dr. Breuder] spells it out to you.” On information and belief, Defendant Hamilton knew of, agreed to, and spoke with Andrzejewski regarding his comments prior to the meeting. ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph, and these allegations are therefore denied. 41. Defendant Hamilton thereafter capitalized upon the distortion of the May 9 email as a means of furthering her personal interests and political agenda. Starting in July 2014, Defendant Hamilton began participating in interviews and providing commentary to various media outlets, including the Chicago Tribune and the Daily Herald, that were focused on wrongfully discrediting the former Board and Dr. Breuder’s professional and ethical administration of the College of DuPage. ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph, and these allegations are therefore denied. 42. On July 10, 2014, Defendant Hamilton penned an op-ed that harshly criticized the former Board and Dr. Breuder regarding the issues underlying the May 9 email. Defendant Hamilton’s comments were crafted solely as a means of political gamesmanship, as evidenced by the fact that on May 21, 2014, just outside of the window of Andrzejewski’s FOIA request, Defendant Hamilton wrote to Dr. Breuder indicating her support of the Teaching and Learning Center proposed in the May 9 email. ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph, and these allegations are therefore denied. 43. On August 26, 2014, Defendant Hamilton participated in a radio interview with Andrzejewski on the Joe Walsh Show to discuss the May 9 email and other events at the College of DuPage. During the interview, Andrzejewski made several statements that falsely implicated Dr. Breuder with corruption, fraud, and abusive management of the College. Defendant Hamilton indicated support and agreement with Andrzejewski’s comments. Defendant Hamilton herself stated that Dr. Breuder “has a fiefdom.” ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph, and these allegations are therefore denied. 16 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 17 of 78 PageID #:2008 44. In December 2014, Defendant Hamilton provided comment for an editorial penned by Andrzejewski and published in the Huffington Post. In the editorial, Andrzejewski quoted Defendant Hamilton: “Thanks to the professors, College of DuPage is one of the nation's top community colleges. But the lack of administrative executive ethics has been troubling. Ethical business practices haven’t been a part of COD governance for a very long time . . . . Therefore, all the groups are helping to squeeze out corrupt practices.” Defendant Hamilton’s comments were directed at Dr. Breuder. ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph, and these allegations are therefore denied. 45. On January 22, 2015, during a regular meeting of the Board, Defendant Hamilton stated publicly that the January 2015 Agreement reached between the Board and Dr. Breuder constituted a “golden parachute” and “wanton betrayal of [DuPage County] constituents” and that the College of DuPage should “show Dr. Breuder the door.” Defendant Hamilton’s comments were coupled by baseless accusations of improprieties and mismanagement by Dr. Breuder, including a groundless allegation that Dr. Breuder permitted fraudulent and criminal activity to occur at the College. Defendant Hamilton’s comments are another example of her political gamesmanship, as these comments were made despite her earlier approval of the January 2015 Agreement during closed meetings of the Board. ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph, and these allegations are therefore denied. 46. On January 28, 2015, Defendant Hamilton participated in a televised interview on Chicago Tonight. During the interview, Defendant Hamilton stated that Dr. Breuder should be “outright fired.” Defendant Hamilton supported her opinion by improperly implicating Dr. Breuder in unprofessional and unethical conduct. Defendant Hamilton even attacked Dr. Breuder’s personal character, falsely describing Dr. Breuder as “intimidating” and “being very cruel to people in a very unacceptable way.” ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph, and these allegations are therefore denied. 47. Following the events of January 2015, Defendant Hamilton made it her mission to “claw back” Dr. Breuder’s January 2015 Agreement and wrongfully terminate his employment through any means possible. Defendant Hamilton’s resolve to terminate Dr. Breuder, by any means, can be summed up by a quote published by the Daily Herald on March 9, 2015: “Asked about the possibility that an attempt to oust Robert Breuder without pay could provoke a lawsuit that entwines the college in expensive litigation, Hamilton said, ‘Let him sue us. ’” Defendant Hamilton also has been reported as having a vendetta against Dr. Breuder based on his actions in posting a Board-approved censure of Defendant Hamilton on the Board’s website in mid-2014. 17 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 18 of 78 PageID #:2009 ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph, and these allegations are therefore denied. 48. From late-January 2015 through Dr. Breuder’s wrongful termination, Defendant Hamilton pursued her mission by continuing to publicly impugn and discredit Dr. Breuder’s professional and ethical reputation. Defendant Hamilton not only has falsely accused Dr. Breuder of mismanaging the College, but also has maliciously implicated Dr. Breuder in corruption and fraud. Defendant Hamilton has made these accusations in her official capacity, including in her current position as Board Chairman. Defendant Hamilton’s accusations, many of which have been made during public meetings of the Board, have been recorded and published on the Board’s website or through external media outlets. ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph, and these allegations are therefore denied. 49. Defendant Hamilton’s accusations were made with negligent and even reckless disregard for the truth, were unreasonable under the circumstances, and were not rationally related to the fulfillment of her official duties or the administration of the College. In fact, when questioned by the Daily Herald in June 2015 about the validity of the many accusations charged against Dr. Breuder and his administration of the College, as reported upon by the media, Defendant Hamilton stated that a lot of it was “political” and “an exaggeration.” Yet, the Board has based Dr. Breuder’s wrongful termination on these political and exaggerated accusations. ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph, and these allegations are therefore denied. 50. Defendant Hamilton’s conduct has resulted in severe damage to Dr. Breuder’s professional reputation. Multiple dozens of articles have been published about Dr. Breuder by several media outlets, including the Chicago Tribune, Washington Post, USA Today, and Inside Public Higher Education, and many of those articles have portrayed Dr. Breuder as greedy, corrupt, unethical, and unprofessional. Defendant Hamilton instigated such portrayals, and as a result of her wrongful conduct, Dr. Breuder has lost speaking and consulting engagements, was removed from a professional advisory board, and was declined an already-awarded alumni award from his undergraduate alma mater. He also has been shunned from the academic community. ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph, and these allegations are therefore denied. 18 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 19 of 78 PageID #:2010 Defendant Hamilton Recruits Defendants Mazzochi, Napolitano, and Bernstein to Assist in Pursuing Her Personal and Political Agenda to Terminate Dr. Breuder 51. In or around February 2015, Defendant Hamilton reported to the public and to various media outlets that she intended to achieve her goal of terminating Dr. Breuder’s employment by taking over the Board through the upcoming April 2015 elections and then acting to “accelerate” Dr. Breuder’s dismissal. ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph, and these allegations are therefore denied. 52. Throughout February 2015, Defendant Hamilton recruited potential candidates to run for the Board to assist her in terminating Dr. Breuder. By March 2015, Defendant Hamilton had found and began publicly endorsing her slate of candidates: Defendants Mazzochi, Napolitano, and Bernstein. Defendants Mazzochi, Napolitano, and Bernstein ran for election on a “Clean Slate” platform that was primarily focused on “end[ing] Breuder-era corruption” and “claw[ing] back as much of President Breuder’s $763,000 as legally possible.” ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph, and these allegations are therefore denied. 53. Defendant Hamilton used her official position to promote and endorse the socalled “Clean Slate” platform. Defendant Hamilton attended several “Clean Slate” campaigning events in her official capacity and, on information and belief, personally contributed between $80,000 and $100,000 to the “Clean Slate” campaign. On March 31, 2015, Defendant Hamilton participated in a televised interview that aired on CLTV’s Politics Tonight in which she stated her endorsement of a “slate of candidates” who could help her “clean up” the College of DuPage. ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph, and these allegations are therefore denied. 54. On April 2, 2015, Defendants Mazzochi, Napolitano, and Bernstein were elected to the Board. Without hesitation, Defendants Mazzochi, Napolitano, and Bernstein used their election to promote the false charges that they had made against Dr. Breuder during their campaigns. On the night of the election, Defendants Mazzochi, Napolitano, and Berstein issued the following statement to the press: “Tonight, they gave us a clear mandate to clean up the College of DuPage . . . . To finally stop the waste, fraud and abuse. . . .” Defendant Bernstein separately stated, “In order to do that, we have to stop the corruption . . . .” ANSWER: Defendant admits that Deanne Mazzochi, Frank Napolitano and Charles Bernstein were elected to the Board of Trustees in April 2015. Defendant lacks sufficient knowledge to form 19 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 20 of 78 PageID #:2011 a belief as to the truth of the remaining allegations in this paragraph, and these allegations are therefore denied. 55. Defendant Hamilton seconded Defendants Mazzochi, Napolitano, and Bernstein’s statement, commenting to CBS Chicago on the night of the election: “I am absolutely thrilled. I just feel the community has spoken, and they’ve spoken out against fraud, waste, and abuse; and they’ve spoken for good government.” ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph, and these allegations are therefore denied. 56. Ironically, since the election, Defendants Hamilton, Mazzochi, Napolitano, and Bernstein, and the “Clean Slate” Political Action Committee have had five complaints filed against them collectively with the State Board of Elections for violations of campaigning disclosure requirements. In addition, on April 2, 2015, the College’s Internal Auditor issued a report finding that Defendant Hamilton’s endorsement of the “Clean Slate” candidates violated the College’s ethics policies, specifically through her participation in prohibited political activity while acting in her official capacity as Vice-Chairman of the Board. ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph, and these allegations are therefore denied. Defendants Hamilton, Mazzochi, Napolitano, and Bernstein Immediately Placed Dr. Breuder on Indefinite Administrative Leave 57. On April 28, 2015, Defendants Mazzochi, Napolitano, and Bernstein began their terms as trustees of the Board. ANSWER: Defendant denies the allegations in this paragraph. 58. In the late afternoon of April 28, 2015, Dr. Breuder received a letter from Defendants Hamilton, Mazzochi, Napolitano, and Bernstein that directed Dr. Breuder to organize a special meeting of the Board to be convened on April 30, 2015 at 8:00 p.m. The letter included a proposed agenda for the special meeting that listed the following item of new business for approval: “Placement of President Dr. Robert L. Breuder on Paid Administrative Leave; Appointment of Dr. Joseph Collins to Serve as Acting Interim President of the College.” The letter threatened that if Dr. Breuder did not implement the enclosed agenda, disciplinary or other action would be taken against Dr. Breuder. A true and correct copy of the April 28, 2015 letter and the accompanying proposed agenda are attached hereto as Exhibit D. 20 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 21 of 78 PageID #:2012 ANSWER: Defendant admits that Exhibit D to Plaintiff’s Complaint purports to be a letter dated April 28, 2015, to Dr. Breuder from Trustees Kathy Hamilton, Deanne Mazzochi, Frank Napolitano, and Charles Bernstein and admits that this paragraph accurately quotes Exhibit D to Plaintiff’s Complaint. Defendant denies the remaining allegations in this paragraph. 59. On April 30, 2015, at approximately 7:20 p.m., an organizational meeting of the Board took place pursuant to Section 3-8 of the Act to elect new officers of the Board. At the organizational meeting, Defendants Hamilton, Mazzochi Napolitano, and Bernstein nominated and voted each other into officer positions. Defendant Hamilton was appointed Chairman. Defendant Mazzochi was appointed Vice Chairman. Defendant Napolitano was appointed Secretary. Board Trustees Erin Birt, Joseph Wozniak, and Dianne McGuire voted against each of these appointments. A true and correct copy of the minutes of the Board’s April 30, 2015 organizational meeting are attached hereto as Exhibit E. ANSWER: Defendant admits that an organizational meeting of the Board of Trustees took place on April 30, 2015, at which Kathy Hamilton was elected Chairman, Deanne Mazzochi was elected Vice Chairman, and Frank Napolitano was elected Secretary. Defendant admits that Exhibit E purports to be the minutes of the April 30, 2015, organizational meeting. Defendant lacks sufficient knowledge to form a belief as to the truth of the remaining allegations in this paragraph, and these allegations are therefore denied. 60. On April 30, 2015, at approximately 9:03 p.m., the Board began its special meeting pursuant to the agenda pushed through by Defendants Hamilton, Mazzochi, Napolitano, and Bernstein. At the special meeting, a motion was heard to adopt Resolution No. 15-430-2 to immediately place Dr. Breuder on paid administrative leave (which included banning Dr. Breuder from the College) and to appoint Dr. Joseph Collins as Acting Interim President. Defendants Hamilton, Mazzochi, Napolitano, and Bernstein voted in favor of the resolution. All other Board trustees voted against the resolution. The resolution was approved and immediately enforced. True and correct copies of the minutes of the Board’s April 30, 2015 special meeting and Resolution No. 15-430-2 are attached hereto as Exhibits F and G, respectively. ANSWER: Defendant admits that Resolution No. 15-430-2 was passed at the April 30, 2015, Board of Trustees meeting to place Plaintiff on paid administrative leave and appointing Dr. Collins as acting interim President. Defendant admits that Trustees Kathy Hamilton, Deanne Mazzochi, Frank Napolitano, and Charles Bernstein voted in favor of the resolution and that all 21 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 22 of 78 PageID #:2013 other trustees voted against the resolution. Defendant admits that Exhibit F purports to be meeting minutes from the April 30, 2015 Board of Trustees meeting. Defendant denies the remaining allegations in this paragraph. 61. Contemporaneous with the vote on Resolution No. 15-430-2, Defendant Hamilton commented to the public that “The College of DuPage has been through tough times—times marked by extraordinary and continuous denial. Those troubles are not yet over, but the cause of those troubles are.” Defendant Hamilton was unmistakably and maliciously referring to Dr. Breuder as the cause of the College’s troubles. ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph, and these allegations are therefore denied. 62. The Board’s adoption of Resolution No. 15-430-2 violated the January 2015 Agreement, the Employment Contract, and Dr. Breuder’s due process rights. ANSWER: Defendant denies the allegations in this paragraph. 63. The Board’s adoption of Resolution No. 15-430-2 was not authorized by any contract provision, statute, administrative rule, or Board policy governing Dr. Breuder’s employment. ANSWER: Defendant denies the allegations in this paragraph. 64. The Board lacked any rational basis to adopt Resolution No. 15-430-2, as the circumstances giving rise to the adoption of the resolution were baseless, frivolous, and motivated solely by Defendants Hamilton, Mazzochi, Napolitano, and Bernstein’s personal and political agendas. ANSWER: Defendant denies the allegations in this paragraph. 65. The adoption of Resolution No. 15-430-2 followed months of false accusations and slanderous statements made by Defendants Hamilton, Mazzochi, Napolitano, and Bernstein that charged Dr. Breuder with unprofessional, unethical, and criminal conduct. Defendants Hamilton, Mazzochi, Napolitano, and Bernstein’s accusations were made maliciously and with negligent and even reckless disregard for the truth. ANSWER: Defendant denies the allegations in this paragraph. 22 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 23 of 78 PageID #:2014 66. Defendants Hamilton, Mazzochi, Napolitano, and Bernstein’s conduct was unreasonable under the circumstances and was not rationally related to the fulfillment of their official duties or to the administration of the College. ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph, and these allegations are therefore denied. 67. At no time prior to the Board’s adoption of Resolution No. 15-430-2 was Dr. Breuder afforded any opportunity to respond to the false accusations and slanderous comments underpinning the adoption of the resolution. Nor was Dr. Breuder provided an opportunity to present reasons, either in person or writing, as to why Resolution No. 15-430-2 was inappropriate. In fact, the Board effectively had prohibited Dr. Breuder from being heard or from clearing his name of the accusations charged against him. ANSWER: Defendant denies the allegations in this paragraph. 68. On February 25, 2015, the Board had issued a directive to Dr. Breuder to “not respond, distribute or release any statement and/or communicate orally or in writing with the media until further notice . . . .” The Board lifted this order on April 2, 2015, but only to permit Dr. Breuder to speak with the College’s public relations consultant. Dr. Breuder remained prohibited from speaking directly to the media and the public until his termination on October 20, 2015. ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph, and these allegations are therefore denied. 69. The adoption of Resolution No. 15-430-2 under the circumstances had a grossly unfair and damaging effect on Dr. Breuder’s reputation. Since the adoption of Resolution No. 15430-2, Dr. Breuder has been shunned from the academic community, has been demonized and disparaged throughout the State of Illinois, has had already-awarded awards rescinded, and has been denied professional speaking and consultation opportunities. ANSWER: Defendant denies the allegations in this paragraph. Defendants Hamilton, Mazzochi, Napolitano, and Bernstein Also Devised a Plan to Terminate Dr. Breuder in Contravention of Contractual and Constitutional Rights 70. Following the adoption of Resolution No. 15-430-2, the Board, now led by Defendants Hamilton, Mazzochi, Napolitano, and Bernstein, immediately began devising a plan to terminate Dr. Breuder’s employment in violation of his contractual and constitutional rights. ANSWER: Defendant denies the allegations in this paragraph. 23 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 24 of 78 PageID #:2015 71. On April 30, 2015, Defendants Hamilton, Mazzochi, Napolitano, and Bernstein voted on, and the Board approved by their majority vote, Resolution No. 15-430-5A to retain the law firm Rathje & Woodward, LLC to represent the Board in a variety of matters, including matters related to Dr. Breuder’s employment. See Exh. F. Defendants Hamilton, Mazzochi, Napolitano, and Bernstein also voted on, and the Board approved by their majority vote, Resolution No. 15-430-6 to have the law firm Schuyler, Roche & Crisham, P.C. conduct an internal investigation of the College of DuPage. See Exh. F. ANSWER: Defendant admits that the Board of Trustees passed Resolution Nos. 15-430-5A and 15-430-5B on April 30, 2015, to retain Rathje & Woodward, LLC and Schuyler, Roche & Crisham, P.C. Defendant admits that Trustees Kathy Hamilton, Charles Bernstein, Frank Napolitano, and Deanne Mazzochi voted in favor of the resolutions. Defendant lacks sufficient knowledge to form a belief as to the truth of the remaining allegations in this paragraph, and these allegations are therefore denied. 72. Resolution Nos. 15-430-5A and 15-430-6 violated Board Policy Nos. 5-30, 10-60, and 15-25, as well as Illinois Rules of Professional Conduct 1.7, 1.8, and 1.9. These resolutions also had the effect of violating Dr. Breuder’s constitutionally protected rights. ANSWER: Defendant denies the allegations in this paragraph. 73. The impropriety of the Board’s retention of Rathje & Woodward is demonstrated, in part, by the fact that on January 27, 2015, Rathje & Woodward filed a lawsuit for injunctive and declaratory relief against the Board in the Illinois Circuit Court for DuPage County. That lawsuit was filed on behalf of For the Good of Illinois, Edgar County Watchdogs, Adam Andrzejewski, Kirk Allen, and John Kraft. The subject matter of the lawsuit related to the lawfulness of the Board’s approval of Dr. Breuder’s January 2015 Agreement. A true and correct copy of the Complaint filed in this lawsuit is attached hereto as Exhibit H. ANSWER: Defendant admits that Rathje & Woodward, LLC filed a complaint for injunctive and declaratory relief on behalf of For the Good of Illinois, Inc., Edgar County Watchdogs, Inc. Adam Andrzejewski, Kirk Allen, and John Kraft against the Board of Trustees on or about January 27, 2015. Defendant admits that Exhibit H purports to be a copy of the complaint filed in that action. Defendant denies that its retention of Rathje & Woodward was improper. Defendant lacks sufficient knowledge to form a belief as to the truth of the remaining allegations in this paragraph, 24 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 25 of 78 PageID #:2016 and these allegations are therefore denied. 74. The impropriety of Board’s retention of Schuyler, Roche & Crisham is evidenced, at least, by Defendant Hamilton’s relationship with Daniel Kinsella of Schuyler, Roche & Crisham. Mr. Kinsella has represented Defendant Hamilton in her personal capacity at times relevant to this lawsuit, including with respect to Defendant Hamilton’s dealings with the Board. Mr. Kinsella was appointed to lead the investigation authorized by Resolution No. 15-430-6, which was instituted solely to fish for information to support Defendants Hamilton, Mazzochi, Napolitano, and Bernstein’s determination to wrongfully terminate Dr. Breuder. ANSWER: Defendant lacks sufficient knowledge to form a belief as to whether Mr. Kinsella “has represented Defendant Hamilton in her personal capacity at times relevant to this lawsuit, including with respect to Defendant Hamilton’s dealings with the Board.” Defendant denies the remaining allegations in this paragraph. 75. Defendant Hamilton has admitted that the retention of Rathje & Woodward and Schuyler, Roche & Crisham was meant solely to ensure that the Board would fulfill the political agendas of Defendants Hamilton, Mazzochi, Napolitano, and Bernstein. On May 4, 2015, Defendant Hamilton appeared on Chicago Tonight and stated that “the most important thing is not necessarily optics [i.e., the impropriety of these retentions] but solving the problem, . . . hiring the right people to solve the problem is the right optics.” The “right people” were people who Defendants Hamilton, Mazzochi, Napolitano, and Bernstein believed would do what was necessary to fulfill their determination to wrongfully terminate Dr. Breuder. ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph, and these allegations are therefore denied. 76. Since April 30, 2015, the Board, through Mr. Kinsella, has conducted the internal investigation authorized by Resolution No. 15-430-6 akin to a witch-hunt. On one weekend in May 2015, Mr. Kinsella and his team ransacked the office of Dr. Breuder’s longtime secretary in search of information that Defendants Hamilton, Mazzochi, Napolitano, and Bernstein could use to support their wrongful efforts to terminate Dr. Breuder. Mr. Kinsella and his team have conducted similar searches of Dr. Breuder’s former office and the offices of several other administrative staff. ANSWER: Defendant admits that it conducted an internal investigation authorized by the Board of Trustees by Resolution No. 15-430-6. Defendant denies the remaining allegations in this paragraph. 77. By August 2015, the internal investigation authorized by Resolution No. 15-430-6 25 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 26 of 78 PageID #:2017 had uncovered no evidence or information supporting Dr. Breuder’s termination. As a result, the Board was forced to pursue other avenues of terminating Dr. Breuder’s employment, including acting to wrongfully void his Employment Contract and related agreements. ANSWER: Defendant denies the allegations in this paragraph. 78. On August 20, 2015, Defendants Hamilton, Mazzochi, Napolitano, and Bernstein voted on, and the Board approved by their majority vote, a motion to authorize the Board to request that the DuPage County State’s Attorney enforce a non-binding Illinois Attorney General opinion, dated July 24, 2015, which opined that the Board’s approval of the third addendum to Dr. Breuder’s Employment Contract partially violated the Open Meetings Act (“AG Opinion”). A true and correct copy of the minutes from the August 20, 2015 Board meeting are attached hereto as Exhibit I. ANSWER: Defendant admits that the Board of Trustees passed a motion to authorize a request that the DuPage County State’s Attorney enforce the Attorney General’s opinion on August 20, 2015 and that Trustees Frank Napolitano, Deanne Mazzochi, Kathy Hamilton, and Charles Bernstein voted in favor of the motion. Defendant admits that Exhibit I purports to be a copy of the minutes from the August 20, 2015 Board of Trustees meeting. Defendant further admits that the Illinois Attorney General’s Office opined in its July 24, 2015, opinion that the Board of Trustees violated the Illinois Open Meetings Act when it approved a third addendum to Plaintiff’s employment contract with the Board of Trustees in 2011. Defendant lacks sufficient knowledge to form a belief as to the truth of the remaining allegations in this paragraph, and these allegations are therefore denied. 79. On August 21, 2015, Defendant Hamilton wrote to the DuPage County State’s Attorney requesting that the State’s Attorney issue a binding opinion enforcing the AG Opinion. The purpose of the August 21, 2015 letter was to seek legal authority to void Dr. Breuder’s Employment Contract and enable the Board to terminate Dr. Breuder’s employment without cause or due process of the law. A true and correct copy of the draft letter approved by the Board on August 20, 2015 is attached hereto as Exhibit J. 26 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 27 of 78 PageID #:2018 ANSWER: Defendant admits that Kathy Hamilton sent a letter to the DuPage County State’s Attorney and that Exhibit J purports to be a copy of that letter. Defendant denies the allegations in this paragraph to the extent they summarize the contents of the letter. The letter is a written document that speaks for itself. Defendant denies that the purpose of this letter was to enable it to terminate Plaintiff’s employment without cause or due process of the law. Defendant lacks sufficient knowledge to form a belief as to the truth of the remaining allegations in this paragraph, and these allegations are therefore denied. 80. On September 11, 2015, the State’s Attorney responded to the August 21 letter and denied the Board’s request to enforce the AG Opinion. In denying the request, the State’s Attorney provided a detailed analysis of the AG Opinion and the enforceability of actions made in violation of the Open Meetings Act. Pursuant to controlling Illinois law, the State’s Attorney determined that the third addendum to Dr. Breuder’s Employment Contract was not void due to the violation stated in the AG Opinion. A true and correct copy of the State Attorney’s September 11, 2015 letter is attached hereto as Exhibit K. ANSWER: Defendant admits that the State’s Attorney responded to Ms. Hamilton on September 11, 2015, and that Exhibit K purports to be a copy of the response. Defendant denies the allegations in this paragraph to the extent they summarize the contents of the letter. The letter is a written document that speaks for itself. Defendant further denies that the State’s Attorney’s response was made pursuant to controlling Illinois law. 81. Nonetheless, on September 17, 2015, Defendants Hamilton, Mazzochi, Napolitano, and Bernstein then voted on, and the Board approved by their majority vote, a resolution to declare Dr. Breuder’s Employment Contract and all related agreements, including the January 2015 Agreement, void ab initio. The Board’s resolution was not supported by any contract provision, statute, or other legal authority. A true and correct copy of the Board’s resolution to void Dr. Breuder’s employment agreements, excerpted from the packet for the September 17, 2015 Board meeting, is attached hereto as Exhibit L. ANSWER: Defendant admits that the Board passed a motion to declare Plaintiff’s employment agreement void ab initio on September 17, 2015, and that Trustees Kathy Hamilton, Deanne Mazzochi, Frank Napolitano, and Charles Bernstein voted in favor of the motion and that Exhibit 27 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 28 of 78 PageID #:2019 L purports to be a copy of the Board’s resolution. Defendant denies the remaining allegations in this paragraph. 82. Immediately preceding the September 17 vote, Defendant Hamilton maliciously commented to the public that Dr. Breuder’s employment agreements were an “outrage” and “blatant” attempts to defy the voters. Defendant Hamilton also made several comments signifying that Dr. Breuder had maliciously and unlawfully forced prior Boards into executing his employment agreements. These statements were unreasonably, maliciously, and recklessly made and had no basis in fact or law. ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph and these allegations are therefore denied. 83. Defendant Mazzochi also made similarly baseless comments prior to the vote. Defendant Mazzochi defended the resolution as being supported by the opinions of the Attorney General, the State’s Attorney, and several Illinois legislators who all believed that Dr. Breuder’s employment agreements were void due to violations of the Open Meetings Act. Defendant Mazzochi failed to inform the public that only one of Dr. Breuder’s employment agreements (the third addendum) was opined to have violated the Open Meetings Act and that the State’s Attorney informed the Board that the third addendum was not void due to that violation. Defendant Mazzochi’s comments were knowingly and intentionally misleading and maliciously made to rally public support against Dr. Breuder and in favor of the Board’s wrongful actions. ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph and these allegations are therefore denied. 84. At the time the Board voted on the resolution, Dr. Breuder remained on forced administrative leave pursuant to Resolution No. 15-430-2, which prohibited Dr. Breuder from vising the campus and, consequently, from attending any and all Board meetings. As a result, Dr. Breuder was denied his right to be heard, either in person or in writing, on the legality or appropriateness of the resolution. Dr. Breuder also was denied the right to clear his name of the various accusations the Board made against him prior to voting on the resolution. ANSWER: Defendant admits that Plaintiff was on administrative leave on September 17, 2015. Defendant denies the remaining allegations in this paragraph. 85. In addition to the actions described above, the Board proceeded to conduct sham termination proceedings against Dr. Breuder. On August 20, 2015, Defendants Hamilton, Mazzochi, Napolitano, and Bernstein voted on, and the Board approved by their majority vote, a motion to authorize the Board to proceed with termination proceedings of Dr. Breuder. Exh. I. 28 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 29 of 78 PageID #:2020 ANSWER: Defendant admits that a motion to authorize initiation of termination proceedings against Plaintiff was passed by the Board of Trustees on August 20, 2015, and that Trustees Kathy Hamilton, Deanne Mazzochi, Frank Napolitano, and Charles Bernstein voted in favor of the motion. Defendant denies the remaining allegations in this paragraph. 86. Prior to that vote, Board Trustee Dianne McGuire warned that the actions of Defendants Hamilton, Mazzochi, Napolitano, and Bernstein with respect to Dr. Breuder lacked a valid and legal basis. Trustee McGuire’s comments were based, in part, on discussions that had taken place during the immediately preceding closed session of the Board. See id. Trustee McGuire’s comments also are supported by a recording of a January 2015 closed session of the Board, that was leaked to the public in July 2015, which reveals that the Board’s then-outside counsel provided an advisory opinion on the legality of terminating Dr. Breuder and advised the Board that there was no legal or factual basis to terminate Dr. Breuder. ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph and these allegations are therefore denied. 87. On September 17, 2015, Defendants Hamilton, Mazzochi, Napolitano, and Bernstein voted on, and the Board approved by their majority vote, the appointment of Joseph A. Morris to preside over the termination proceedings as the Hearing Officer. Due to controversy over the appointment of Mr. Morris, on September 28, 2015, the Board voted on and approved the appointment of a new Hearing Officer. ANSWER: Defendant admits that a motion to appoint Joe Morris as an administrator appeal hearing officer was passed at the September 17, 2015, Board of Trustees meeting and that Trustees Kathy Hamilton, Deanne Mazzochi, Frank Napolitano, and Charles Bernstein voted in favor of the motion. Defendant admits that a motion to appoint Judge David Coar as an administrator appeal hearing officer was passed at the September 28, 2015, Board of Trustees meeting. Defendant denies the remaining allegations in this paragraph. 88. The Board’s appointment of a Hearing Officer was not intended to provide Dr. Breuder the opportunity to be heard by an impartial tribunal. The Board’s resolution appointing a Hearing Officer makes clear that Hearing Officer’s only role was to receive evidence during the termination hearing. The Hearing Officer was not intended to have the right or ability to make a recommendation to the Board or to provide any input on the termination decision, as that decision was to remain solely in the hands of the Board. A true and correct copy of the Board’s resolution appointing a hearing officer, excerpted from the packet for the September 28, 2015 29 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 30 of 78 PageID #:2021 Board meeting, is attached hereto as Exhibit M. ANSWER: Defendant admits that Exhibit M purports to be a copy of the Board’s resolution appointing a hearing officer at the September 28, 2015 Board meeting. Defendant denies the remaining allegations in this paragraph. 89. In addition to the above, Defendants Hamilton, Mazzochi, Napolitano, and Bernstein attempted to support their wrongful actions by making various false statements during several public Board meetings between May and October 2015 that were intended to impugn Dr. Breuder’s credibility, professionalism, and ethics. Such statements falsely charge with mismanagement, misuse of public funds, fraudulent financial and business practices, and corruption. These statements were made maliciously, with negligent and even reckless disregard for their truth, and were not rationally related to the fulfillment of Defendants Hamilton, Mazzochi, Napolitano, and Bernstein’s duties as Board trustees. These statements have been recorded and posted on the Board’s website and have been reported upon by various media outlets, including the Chicago Tribune and the Daily Herald. ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph and these allegations are therefore denied. The Board Terminated Dr. Breuder In Violation of His Contractual and Constitutional Rights 90. The Board, led by Defendants Hamilton, Mazzochi, Napolitano, and Bernstein, consciously and deliberately chose not to provide Dr. Breuder with a termination procedure or hearing that complied with the terms of his Employment Contract or even with the basic requirements of due process. In fact, despite the Board’s various resolutions indicating that Dr. Breuder would be provided a hearing prior to his termination, the Board ultimately decided to deny Dr. Breuder any hearing or meaningful opportunity to be heard prior to his termination. ANSWER: Defendant denies the allegations in this paragraph. 91. On August 27, 2015, nearly four months after being forced on administrative leave, the Board sent Dr. Breuder a package of loose documents with a simple cover letter stating that the Board’s attorneys could meet with Dr. Breuder the following week. The cover letter provided no explanation of why the documents were being sent, what they represented, or even why the Board’s attorneys wanted to meet with Dr. Breuder. A true and correct copy of the August 27, 2015 letter is attached hereto as Exhibit N. ANSWER: Defendant admits that Exhibit N purports to be a letter dated August 27, 2015. Defendant denies the allegations in this paragraph to the extent they summarize the contents of the letter. The letter is a written document that speaks for itself. Defendant denies the remaining 30 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 31 of 78 PageID #:2022 allegations in this paragraph. 92. On August 31, 2015, Dr. Breuder, through his legal counsel, responded to the Board’s August 27 letter, requesting the reason for the proposed meeting and informing the Board that Dr. Breuder could not meet with the Board’s attorneys the following week. A true and correct copy of the August 31, 2015 letter is attached hereto as Exhibit O. ANSWER: Defendant admits that Exhibit O purports to be a letter from Plaintiff’s legal counsel dated August 31, 2015. Defendant denies the remaining allegations in this paragraph to the extent they summarize the contents of the letter. The letter is a written document that speaks for itself. 93. Dr. Breuder never received a response to his August 31 letter. ANSWER: Defendant lacks sufficient knowledge to form a belief as to the truth of the allegations in this paragraph and these allegations are therefore denied. 94. On September 24, 2015, the Board sent Dr. Breuder a letter purporting to give him notice of the charges upon which the Board would decide whether to proceed with his termination. A true and correct copy of the September 24, 2015 letter is attached hereto as Exhibit P. ANSWER: Defendant admits that Exhibit P purports to be a letter to Plaintiff dated September 24, 2015. Defendant denies the remaining allegations in this paragraph to the extent they summarize the contents of the letter. The letter is a written document that speaks for itself. 95. On September 28, 2015, Dr. Breuder, through his legal counsel, responded to the September 24 letter. Dr. Breuder objected to the Board’s conduct as being in violation of his due process rights and in breach of the terms of his Employment Contract. Without waiving these objections, Dr. Breuder informed the Board that he would participate in a termination hearing and requested that he and the Board discuss a mutually agreeable date for such a hearing. A true and correct copy of the September 28, 2015 letter is attached hereto as Exhibit Q. ANSWER: Defendant admits that Exhibit Q purports to be a letter from Plaintiff to Chairman Kathy Hamilton dated September 28, 2015. Defendant denies the remaining allegations in this paragraph to the extent they summarize the contents of the letter. The letter is a written document that speaks for itself. 96. On October 1, 2015, the Board, through its legal counsel, responded to Dr. 31 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 32 of 78 PageID #:2023 Breuder’s September 28 letter. The Board confirmed that it would not comply with the terms of Dr. Breuder’s Employment Contract. The Board further stated that Dr. Breuder is not “entitle[d] to the elements of due process.” The Board then stated that Dr. Breuder could provide a written response to the Board’s charges and that the Board would consider this written response prior to making its final decision. The Board’s letter ignored Dr. Breuder’s request to schedule a hearing date. A true and correct copy of the October 1, 2015 letter is attached hereto as Exhibit R. ANSWER: Defendant admits that Exhibit R purports to be a letter to Plaintiff dated October 1, 2015. Defendant denies the remaining allegations in this paragraph to the extent they summarize the contents of the letter. The letter is a written document that speaks for itself. 97. On October 5, 2015, Dr. Breuder, through his legal counsel, responded to the October 1 letter. Dr. Breuder set forth his objections to the Board’s actions and urged the Board to comply, at the very least, with his constitutional rights. Dr. Breuder requested that the Board specify the procedure for the termination hearing, as it appeared from the October 1 letter that Dr. Breuder would not be permitted to attend the hearing or to present evidence or witnesses to refute the Board’s charges. Dr. Breuder further objected that if all Board trustees were permitted to vote on Dr. Breuder’s termination, the Board’s action would violate Dr. Breuder’s right to be heard by a fair and impartial tribunal. A true and correct copy of the October 5, 2015 letter is attached hereto as Exhibit S. ANSWER: Defendant admits that Exhibit S purports to be a letter from Plaintiff dated October 5, 2015. Defendant denies the remaining allegations in this paragraph to the extent they summarize the contents of the letter. The letter is a written document that speaks for itself. 98. On October 12, 2015, the Board, through its legal counsel, responded to the October 5 letter. The Board’s response ignored all of the concerns and objections raised by Dr. Breuder’s October 5 letter. The Board’s letter made clear that Dr. Breuder would not be permitted to attend the Board’s hearing, if one even was intended to occur, and that Dr. Breuder’s only opportunity to respond to or refute the Board’s charges would be through a written letter that had to be sent by October 16, 2015. A true and correct copy of the October 12, 2015 letter is attached hereto as Exhibit T. ANSWER: Defendant admits that Exhibit T purports to be a letter to Plaintiff’s legal counsel dated October 12, 2015. Defendant denies the remaining allegations in this paragraph to the extent they summarize the contents of the letter. The letter is a written document that speaks for itself. 99. On October 16, 2015, Dr. Breuder, through his legal counsel, responded to the October 12 letter. Dr. Breuder again stated his objections to the Board’s actions and urged the Board to comply with his basic due process right to a fair hearing by an impartial tribunal. Dr. 32 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 33 of 78 PageID #:2024 Breuder made clear that in light of the Board’s conduct, and especially the resolve of Defendants Hamilton, Mazzochi, Napolitano, and Bernstein to terminate Dr. Breuder, the Board’s offer to “consider a written response from Dr. Breuder prior to making a decision” was not meaningful and did not comply with Dr. Breuder’s contractual or constitutional rights. A true and correct copy of the October 16, 2015 letter is attached hereto as Exhibit U. ANSWER: Defendant admits that Exhibit U purports to be a letter from Plaintiff’s legal counsel dated October 16, 2015. Defendant denies the remaining allegations in this paragraph to the extent they summarize the contents of the letter. The letter is a written document that speaks for itself. 100. Not less than a few hours after the Board’s receipt of the October 16 letter, the Board posted on its website a notice of special meeting to take place on October 20, 2015, at 6 p.m. The Board’s proposed agenda, which was simultaneously posted, included as the sole substantive agenda item a “Resolution to Terminate the Employment of the College President.” The resolution was attached to the agenda and included all the charges previously listed in the Board’s September 24 letter. True and correct copies of the Board’s Meeting Notice and Proposed Agenda are attached hereto as Exhibit V. ANSWER: Defendant admits that Exhibit V purports to be the notice of meeting and agenda for the October 20, 2015 special board meeting. Defendant admits that the notice and agenda were posted to the Board’s website and that a resolution to terminate Plaintiff’s employment was included on the meeting’s agenda. Defendant denies the allegations in this paragraph to the extent that they summarize the contents of the agenda. The agenda is a written document that speaks for itself. Defendant lacks sufficient knowledge to form a belief as to the truth of the remaining allegations and these allegations are therefore denied. 101. On October 20, 2015, Defendants Hamilton, Mazzochi, Napolitano, and Bernstein voted on, and the Board approved by their majority vote, the “Resolution to Terminate the Employment of the College President.” Board Trustee Diane McGuire voted against the resolution. Board Trustees Erin Birt and Joseph Wozniak were absent. Contemporaneous with the vote, Defendant Hamilton stated, “We promised to end fraud, waste and abuse at the College of DuPage. By ending this chapter, this board has kept that promise." ANSWER: Defendant admits that the Board passed a motion to approve the resolution to terminate the employment of the college president at the October 20, 2015, Board of Trustees meeting and that Trustees Charles Bernstein, Frank Napolitano, Deanne Mazzochi, and Kathy 33 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 34 of 78 PageID #:2025 Hamilton voted in favor of the motion. Defendant admits that Trustees Erin Birt and Joseph Wozniak were not present at the October 20, 2015, Board of Trustees meeting. Defendant lacks sufficient knowledge to form a belief as to the truth of the remaining allegations and these allegations are therefore denied. 102. The Board’s termination of Dr. Breuder resulted in a deprivation of Dr. Breuder’s property and liberty interests without due process of the law. The Board’s termination of Dr. Breuder was also in violation of the January 2015 Agreement and his Employment Contract. ANSWER: Defendant states that the allegations in this paragraph constitute legal conclusions for which no answer is required. To the extent an answer is required, Defendant denies all of the allegations in this paragraph. 103. As set forth above, at no time prior to October 20, 2015, did the Board offer Dr. Breuder a hearing or a meaningful opportunity to respond to or refute the charges underlying Dr. Breuder’s termination. In fact, despite the various Board resolutions that suggested that a hearing would take place, the Board denied Dr. Breuder’s requests for a hearing. That denial occurred despite the fact that the Board, through the actions of Defendants Hamilton, Mazzochi, Napolitano, and Bernstein, had publicly accused Dr. Breuder of unprofessional, unethical, and even criminal conduct during its sham “termination proceedings” and prior to his termination. ANSWER: Defendant denies that it did not offer Plaintiff a meaningful opportunity to respond to or refute the charges underlying his termination and denied Plaintiff’s requests for a hearing. Defendant lacks sufficient knowledge to form a belief as to the truth of the remaining allegations and these allegations are therefore denied. 104. The Board also denied Dr. Breuder of his right to have his termination decided by a fair and impartial tribunal. Despite the very clear bias of Defendants Hamilton, Mazzochi, Napolitano, and Bernstein, all Board trustees were permitted to vote on Dr. Breuder’s termination. The only Board trustees to vote in favor of Dr. Breuder’s termination were Defendants Hamilton, Mazzochi, Napolitano, and Bernstein. ANSWER: Defendant admits that all Board trustees were permitted to vote on Plaintiff’s termination and that Trustees Kathy Hamilton, Deanne Mazzochi, Frank Napolitano, and Charles Bernstein voted in favor of the termination. Defendant denies the remaining allegations in this 34 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 35 of 78 PageID #:2026 paragraph. 105. The Board’s termination of Dr. Breuder was arbitrary, capricious, and unreasonable under the circumstances. Defendants Hamilton, Mazzochi, Napolitano, and Bernstein had decided to wrongfully terminate Dr. Breuder long before October 20, 2015, based solely on their personal interests and political agendas. The charges outlined in the Board’s September 24 letter and October 20 resolution are baseless and nothing more than pretext for Defendants Hamilton, Mazzochi, Napolitano, and Bernstein’s predetermination to terminate Dr. Breuder. ANSWER: Defendant denies the allegations in this paragraph. 35 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 36 of 78 PageID #:2027 COUNT I DUE PROCESS VIOLATION (Property Interest) 106. Plaintiff incorporates by reference paragraphs 1 through 105 of this Complaint as paragraph 106 of Count I of this Complaint. ANSWER: Defendant incorporates its answer to each of the foregoing allegations in this Complaint. 107. Pursuant to the January 2015 Agreement, the Employment Contract, and Board policies, Dr. Breuder has a property interest and present entitlement in his employment as the President of the College of DuPage. ANSWER: Defendant states that the allegations in this paragraph constitute legal conclusions for which no answer is required. To the extent an answer is required, Defendant denies the allegations in this paragraph. 108. Dr. Breuder also has a property interest and entitlement to certain compensation and benefits, including deferred compensation, an agreed upon lump sum payment to be paid upon Dr. Breuder’s retirement from the College of DuPage, and other retirement benefits conferred through the January 2015 Agreement and Employment Contract. ANSWER: Defendant states that the allegations in this paragraph constitute legal conclusions for which no answer is required. To the extent an answer is required, Defendant denies the allegations in this paragraph. 109. Under the Fourteenth Amendment to the United States Constitution, Dr. Breuder cannot be deprived of these interests without adequate due process protections, including notice of the charges against him, notice of the evidence upon which the charges will be based, and a chance to present witnesses and confront adverse evidence at fair hearing before an impartial tribunal. ANSWER: Defendant states that the allegations in this paragraph constitute legal conclusions for which no answer is required. To the extent an answer is required, Defendant denies the allegations in this paragraph. 110. Dr. Breuder was entitled to the full range of due process protections prior to his termination because the State of Illinois does not provide adequate post-termination procedures for a person in Dr. Breuder’s position. The only state remedy available to Dr. Breuder is a 36 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 37 of 78 PageID #:2028 common law writ of certiorari or breach of contract action. A common law writ of certiorari is inadequate here since the Board denied Dr. Breuder a pre-termination hearing. ANSWER: Defendant states that the allegations in this paragraph constitute legal conclusions for which no answer is required. To the extent an answer is required, Defendant denies the allegations in this paragraph. 111. The Board has deprived Dr. Breuder of his property rights without due process through at least the following actions: a. placing Dr. Breuder on forced administrative leave, thereby revoking his right to act as President of the College of DuPage, without providing Dr. Breuder adequate notice, a reasonable basis for the decision, or an opportunity to be heard; b. declaring Dr. Breuder’s Employment Contract and the January 2015 Agreement void ab initio, without providing Dr. Breuder adequate notice, a reasonable basis for the decision, or an opportunity to be heard; c. publicly announcing the Board’s intention to terminate Dr. Breuder based on false charges of unprofessional, unethical, and even criminal conduct without first providing notice of those charges or an opportunity to refute those charges; d. voting on a resolution to conduct a sham and pre-textual termination hearing; e. denying Dr. Breuder’s requests for a pre-termination hearing that complied with Dr. Breuder’s due process rights; f. denying Dr. Breuder any meaningful opportunity to be heard or to respond to the Board’s charges prior to his termination; g. permitting all Board trustees, including trustees who are biased and prejudiced toward Dr. Breuder, to vote on Dr. Breuder’s termination; h. basing Dr. Breuder’s termination on charges that are pre-textual, unsubstantiated, and which do not provide cause for his termination. ANSWER: Defendant states that the allegations in this paragraph constitute legal conclusions for which no answer is required. To the extent an answer is required, Defendant denies the allegations in this paragraph. 112. The Board’s actions in terminating Dr. Breuder have deprived him of adequate notice of the evidence upon which the charges against him are based, a chance to present 37 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 38 of 78 PageID #:2029 witnesses and evidence at a hearing to refute the charges against him, and the right to be heard by and have his termination decided by an impartial tribunal. ANSWER: Defendant denies the allegations in this paragraph. 113. The Board’s decision to terminate Dr. Breuder was arbitrary, capricious, and unreasonable under the circumstances. Defendants Hamilton, Mazzochi, Napolitano, and Bernstein’s decision to terminate Dr. Breuder was malicious, had no reasonable basis in fact, and was motivated solely by their personal interests and political agendas. ANSWER: Defendant denies the allegations in this paragraph. 114. Defendants Hamilton, Mazzochi, Napolitano, and Bernstein are not entitled to qualified immunity as they acted to deny Dr. Breuder of his constitutional rights while knowing that such rights were owed to Dr. Breuder under clearly established law. Specifically, Defendants knew that Dr. Breuder was entitled, at the very least, to the opportunity to be heard by and to have his termination decided by an impartial tribunal. ANSWER: Defendant denies the allegations in this paragraph. 115. As a result of Defendants violation of Dr. Breuder’s due process rights, Dr. Breuder has suffered substantial injury, including but not limited to the following: a. Dr. Breuder has been denied the full value of his Employment Contract and the January 2015 Agreement. b. Dr. Breuder will be unable to find or obtain alternative employment opportunities, such as professional consulting engagements or interim presidential appointments. c. Dr. Breuder has suffered extreme embarrassment and humiliation, both personally and professionally, and has experienced acute emotional distress. ANSWER: Defendant denies the allegations in this paragraph. 116. Dr. Breuder is entitled to damages to compensate him for the actual and threatened injuries that have resulted or will result from Defendants’ actions described above. Dr. Breuder also is entitled to punitive damages from the individual defendants for their malicious, wanton, and unreasonable conduct. ANSWER: Defendant denies the allegations in this paragraph. 38 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 39 of 78 PageID #:2030 COUNT II DUE PROCESS VIOLATION (Liberty Interest) 117. Plaintiff incorporates by reference paragraphs 1 through 116 of this Complaint as paragraph 117 of Count II of this Complaint. ANSWER: Defendant incorporates its answer to each of the foregoing allegations in this Complaint. 118. Under the Fourteenth Amendment to the United States Constitution, Dr. Breuder has a liberty interest in employment in a chosen profession and the state cannot deprive Dr. Breuder of that interest without due process. The Board has deprived Dr. Breuder of his occupational liberty interests without due process. ANSWER: Defendant states that the allegations in this paragraph constitute legal conclusions for which no answer is required. To the extent an answer is required, Defendant denies the allegations in this paragraph. 119. Defendants Hamilton, Mazzochi, Napolitano, and Bernstein have made false, slanderous, and stigmatizing statements about Dr. Breuder’s professional, ethical, and even moral conduct. Defendants Hamilton, Mazzochi, Napolitano, and Bernstein’s statements are not supported by fact and have been made solely for personal and political reasons. ANSWER: Defendant denies the allegations in this paragraph. 120. Defendants Hamilton, Mazzochi, Napolitano, and Bernstein have made these statements publicly and in their official capacity as elected members of the Board. Defendants Hamilton, Mazzochi, Napolitano, and Bernstein’s statements are not protected by any privileges or immunities. ANSWER: Defendant denies the allegations in this paragraph. 121. Dr. Breuder’s liberty interests have been implicated as a result of Defendants Hamilton, Mazzochi, Napolitano, and Bernstein’s statements as such statements were made both prior and contemporaneous to actions taken by the Board with respect to Dr. Breuder’s employment. Such employment actions were taken against Dr. Breuder without first permitting Dr. Breuder a meaningful opportunity to clear his name of Defendants Hamilton, Mazzochi, Napolitano, and Bernstein’s stigmatizing statements. ANSWER: Defendant denies the allegations in this paragraph. 122. Dr. Breuder has suffered a loss of professional opportunities central to his 39 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 40 of 78 PageID #:2031 profession as a result of Defendants Hamilton, Mazzochi, Napolitano, and Bernstein’s stigmatizing statements and the Board’s resulting actions against Dr. Breuder. Dr. Breuder has been denied speaking engagements, consultation opportunities, and awards. ANSWER: Defendant denies the allegations in this paragraph. 123. The actions taken by Defendants against Dr. Breuder have been so malicious and widely published that it is virtually certain that Dr. Breuder will be unable to find alternative employment, such as consulting opportunities or interim presidential appointments, or to engage in activities central to his profession. ANSWER: Defendant denies the allegations in this paragraph. 124. Dr. Breuder is entitled to damages to compensate him for the actual and threatened injuries that have resulted or will result from the Defendants’ actions described above. Dr. Breuder also is entitled to punitive damages from the individual defendants for their malicious and unreasonable conduct. ANSWER: Defendant denies the allegations in this paragraph. C O U N T I I I CONSPIRACY Against Individual Defendants Only 125. Plaintiff incorporates by reference paragraphs 1 through 124 of this Complaint as paragraph 125 of Count III of this Complaint. ANSWER: The allegations in this paragraph are directed toward the individual defendants, not the Board of Trustees, and therefore an answer is not required. 126. Defendants Hamilton, Mazzochi, Napolitano, and Bernstein agreed or reached a mutual understanding to take control of the Board through the April 2015 public election and then to terminate Dr. Breuder in violation of his contractual and constitutional rights. ANSWER: The allegations in this paragraph are directed toward the individual defendants, not the Board of Trustees, and therefore an answer is not required. 127. Defendants Hamilton, Mazzochi, Napolitano, and Bernstein acted in furtherance of that conspiracy by campaigning on a spurious “reformist” platform that was based on malicious and false accusations that Dr. Breuder had committed fraud, abuse, waste, and corruption while President of the College of DuPage. Such false and malicious accusations were knowingly and intentionally made to garner public support for Defendants Hamilton, Mazzochi, Napolitano, and Bernstein and against Dr. Breuder. 40 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 41 of 78 PageID #:2032 ANSWER: The allegations in this paragraph are directed toward the individual defendants, not the Board of Trustees, and therefore an answer is not required. 128. Defendants Hamilton, Mazzochi, Napolitano, and Bernstein further pursued their conspiracy by agreeing to conduct sham termination proceedings against Dr. Breuder and by agreeing to misrepresent and distort the results and findings of those proceedings to the public in a manner to further vilify Dr. Breuder and to rally public support for their wrongful actions. ANSWER: The allegations in this paragraph are directed toward the individual defendants, not the Board of Trustees, and therefore an answer is not required. 129. Defendants Hamilton, Mazzochi, Napolitano, and Bernstein perfected their conspiracy by agreeing to deny Dr. Breuder any meaningful opportunity to be heard or to defend himself against Defendants Hamilton, Mazzochi, Napolitano, and Bernstein’s malicious and false accusations, and then to terminate Dr. Breuder in violation of his contractual and constitutional rights. ANSWER: The allegations in this paragraph are directed toward the individual defendants, not the Board of Trustees, and therefore an answer is not required. 130. In entering into and carrying out their conspiracy, Defendants Hamilton, Mazzochi, Napolitano, and Bernstein’s sole motivation was to further their own personal and political interests, specifically by vilifying the former administration of the College and posturing themselves as saviors of the College and District 502 taxpayers. ANSWER: The allegations in this paragraph are directed toward the individual defendants, not the Board of Trustees, and therefore an answer is not required. 131. As a direct and proximate result of Defendants Hamilton, Mazzochi, Napolitano, and Bernstein’s conspiracy, Dr. Breuder was denied rights guaranteed to him under the Fourteenth Amended to the United States Constitution. Dr. Breuder also has sustained damages, including the loss of certain income and benefits, irreparable damage to his personal and professional reputation, and acute emotional distress. ANSWER: The allegations in this paragraph are directed toward the individual defendants, not the Board of Trustees, and therefore an answer is not required. 132. Dr. Breuder is entitled to damages to compensate him for the actual and threatened injuries that have resulted or will result from Defendants Hamilton, Mazzochi, Napolitano, and Bernstein’s actions described above. Dr. Breuder also is entitled to punitive damages from Defendants Hamilton, Mazzochi, Napolitano, and Bernstein for their malicious 41 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 42 of 78 PageID #:2033 and unreasonable conduct. ANSWER: The allegations in this paragraph are directed toward the individual defendants, not the Board of Trustees, and therefore an answer is not required. COUNT IV BREACH OF CONTRACT Against Defendant Board Only 133. Plaintiff incorporates by reference paragraphs 1 through 132 of this Complaint as paragraph 133 of IV of this Complaint. ANSWER: Defendant incorporates its answer to each of the foregoing allegations in this Complaint. 134. On November 18, 2008, Dr. Breuder and the Board executed an Employment Contract, attached hereto as Exhibit A, by which it was agreed that Dr. Breuder would serve as President of the College of DuPage from January 1, 2009 through June 30, 2012. In exchange for Dr. Breuder’s service to the College of DuPage, the Board agreed to compensate Dr. Breuder and provide other benefits as set forth in the Employment Contract. ANSWER: Defendant denies the allegations in this paragraph to the extent they quote, summarize or characterize the contents of a written document. The document speaks for itself. Defendant admits that Plaintiff was employed as the College President beginning in January 1, 2009, and that in exchange for his service, he was paid a salary and provided other benefits. Defendant denies the remaining allegations in this paragraph. 135. At various points throughout Dr. Breuder’s tenure as President of the College of DuPage, the Board approved the extension of the Employment Contract. In or around March 7, 2014, the majority of the Board approved an extension of the Employment Contract to June 30, 2019. ANSWER: Defendant admits that Plaintiff’s employment was extended on more than one occasion. Defendant lacks sufficient information to form a belief as to the truth of the remaining allegations in this paragraph. 136. On January 28, 2015, Dr. Breuder and the Board executed a separate agreement governing Dr. Breuder’s employment with the College of DuPage. Pursuant to the January 2015 Agreement, attached hereto as Exhibit C, Dr. Breuder agreed, in relevant part, to continue to 42 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 43 of 78 PageID #:2034 serve as President of the College of DuPage until March 30, 2016, on which date he would retire. In exchange, the Board agreed, in relevant part, to provide Dr. Breuder a lump sum payment upon his early retirement. The January 2015 Agreement incorporated all terms of the Employment Contract not superseded by the January 2015 Agreement. ANSWER: Defendant denies that Exhibit C is a true and correct copy of a fourth addendum to Plaintiff’s employment agreement. Defendant lacks sufficient knowledge to form a belief as to the truth of the remaining allegations in this paragraph, and these allegations are therefore denied. 137. The Board has committed numerous breaches of the January 2015 Agreement, and the incorporated provisions of the Employment Contract, by at least the following actions: placing Dr. Breuder on forced administrative leave and revoking his right to act as President of the College in bad faith and in contravention of the terms of the January 2015 Agreement, the Employment Contract, Board policies, and the law; a. unilaterally declaring the January 2015 Agreement and the Employment Contract void ab initio in contravention of the terms of the January 2015 Agreement, the Employment Contract, Board policies, and the law; b. willingly and knowingly failing to comply with the termination provisions of Dr. Breuder’s Employment Contract; c. terminating Dr. Breuder without cause and based solely on the personal interests and political agendas of Defendants Hamilton, Mazzochi, Napolitano, and Bernstein; d. denying Dr. Breuder of all rights conferred in the January 2015 Agreement and Employment Contract based solely on the personal interests and political agendas of Defendants Hamilton, Mazzochi, Napolitano, and Bernstein. ANSWER: Defendant denies the allegations in this paragraph. 138. At all times relevant hereto, Dr. Breuder has fully performed his duties as President of the College of DuPage. Dr. Breuder also has performed all other obligations set forth in the January 2015 Agreement and Employment Contract. Dr. Breuder is willing, ready, and fully able to continue to perform his duties as President of the College of DuPage for the duration of the January 2015 Agreement. ANSWER: Defendant denies the allegations in this paragraph. 139. As a direct and proximate result of the Board’s breaches, Dr. Breuder has sustained damages, including the loss of certain income and benefits, irreparable damage to his personal and professional reputation, and acute emotional distress. ANSWER: Defendant denies the allegations in this paragraph. 43 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 44 of 78 PageID #:2035 140. Dr. Breuder is entitled to damages to compensate him for the actual and threatened injuries that have resulted or will result from the Board’s actions described above. ANSWER: Defendant denies the allegations in this paragraph. C O U N T V TORTIOUS INTERFERENCE WITH CONTRACT Against Individual Defendants Only No answer is required as Count V was dismissed with prejudice. See DE 100 at 20. C O U N T V I DEFAMATION Against Individual Defendants Only 147. Plaintiff incorporates by reference paragraphs 1 through 146 of this Complaint as paragraph 147 of Count VI of this Complaint. ANSWER: The allegations in this paragraph are directed toward the individual defendants, not the Board of Trustees, and therefore an answer is not required. 148. Defendants Hamilton, Mazzochi, Napolitano, and Bernstein acted recklessly and, at times, with actual malice in making false and defamatory statements to the public regarding Dr. Breuder. Defendants Hamilton, Mazzochi, Napolitano, and Bernstein’s statements have implicated Dr. Breuder in unprofessional, unethical, and even criminal conduct. ANSWER: The allegations in this paragraph are directed toward the individual defendants, not the Board of Trustees, and therefore an answer is not required. 149. Defendants Hamilton, Mazzochi, Napolitano, and Bernstein made defamatory statements against Dr. Breuder while knowing the statements were false or while negligently failing to ascertain the truth and validity of the statements. ANSWER: The allegations in this paragraph are directed toward the individual defendants, not the Board of Trustees, and therefore an answer is not required. 150. Defendants Hamilton, Mazzochi, Napolitano, and Bernstein’s defamatory statements are not protected by any absolute privileges, as their conduct was motivated solely by personal and political interests and was not reasonably related or necessary to the fulfillment of 44 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 45 of 78 PageID #:2036 their official duties. ANSWER: The allegations in this paragraph are directed toward the individual defendants, not the Board of Trustees, and therefore an answer is not required. 151. As a result of Defendants Hamilton, Mazzochi, Napolitano, and Bernstein’s actions, Dr. Breuder has experienced severe and irreparable damage to his personal and professional reputation. Dr. Breuder has been denied professional speaking engagements, consultation opportunities, and awards due to Defendants Hamilton, Mazzochi, Napolitano, and Bernstein’s actions. ANSWER: The allegations in this paragraph are directed toward the individual defendants, not the Board of Trustees, and therefore an answer is not required. 152. Dr. Breuder is entitled to damages to compensate him for the actual and threatened injuries that have resulted or will result from Defendants Hamilton, Mazzochi, Napolitano, and Bernstein’s actions described above. Dr. Breuder also is entitled to punitive damages from Defendants Hamilton, Mazzochi, Napolitano, and Bernstein for their malicious and unreasonable conduct. ANSWER: The allegations in this paragraph are directed toward the individual defendants, not the Board of Trustees, and therefore an answer is not required. PRAYER FOR RELIEF WHEREFORE, Dr. Breuder respectfully requests that this Court: A. Award compensatory damages to Dr. Breuder for Defendants’ violations of Dr. Breuder’s constitutional and common law rights described above; B. Award punitive to Dr. Breuder from Defendants Hamilton, Mazzochi, Napolitano, and Bernstein for their violations of Dr. Breuder’s constitutional and common law rights described above; C. Award compensatory damages to Dr. Breuder for Defendant Board’s breaches of the January 2015 Agreement and the Employment Contract described above; D. Award compensatory and punitive damages to Dr. Breuder from Defendants Hamilton, Mazzochi, Napolitano, and Bernstein for their intentional interference with Dr. Breuder’s contractual rights; E. Award compensatory and punitive damages to Dr. Breuder resulting from Defendants Hamilton, Mazzochi, Napolitano, and Bernstein’s defamation of Dr. Breuder; 45 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 46 of 78 PageID #:2037 F. Award costs and attorneys’ fees to Dr. Breuder; and G. Award all other relief as the Court finds just and equitable. ANSWER: Defendant denies the allegations contained in this paragraph. DEFENDANT BOARD OF TRUSTEES’ AFFIRMATIVE DEFENSES 1. To the extent Plaintiff has failed to mitigate any alleged damages, any recovery must be correspondingly reduced. 2. Plaintiff’s claims are barred, in whole or in part, because Plaintiff’s contract was void ab initio because the contract extended beyond the term of the then existing board of trustees. 3. Plaintiff’s claims are barred, in whole or in part, because Plaintiff’s contract was void ab initio because the supermajority termination provision in the contract was unlawful. 4. Plaintiff’s claims are barred, in whole or in part, because Plaintiff’s contract was void ab initio because the provision in the agreement that extended the length of Plaintiff’s contract violated the Illinois Open Meetings Act. 5. Plaintiff’s claims are barred, in whole or in part, because Plaintiff engaged in misconduct and mismanagement that constituted cause to terminate his employment. 6. Plaintiff’s claims are barred, in whole or in part, because there was fraud in the inducement of Plaintiff’s retirement package with the Defendant. 7. Plaintiff’s claims are barred, in whole or in part, to the extent that his employment agreement and all addenda thereto lacked adequate consideration, the then-Board lacked the capacity to enter into those instruments for the duration stated, its terms were unconscionable, and/or were entered into by means of fraudulent inducement or misrepresentation. 8. Plaintiff’s claims are barred, in whole or in part, by the doctrines of waiver, estoppel, unjust enrichment, unclean hands, and other equitable considerations. 46 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 47 of 78 PageID #:2038 9. Plaintiff’s claims are barred, in whole or in part, because he failed to exhaust his administrative remedies. COUNTERCLAIMS Defendant Board of Trustees of Community College District 502, DuPage County, Illinois, by and through its counsel, Drinker Biddle & Reath, LLC, brings these counterclaims against Plaintiff, Robert L. Breuder, and states as follows: I. INTRODUCTION 1. Robert Breuder served as President of the College of DuPage from January 1, 2009, through October 2015. During that time, Breuder oversaw an era of waste, fraud, and abuse at the College that caused real harm to the College and, in many cases, direct benefits to Breuder and those close to him. For years, Breuder ran the College like his own private enterprise, rather than as a taxpayer-funded, public institution. While President, Breuder focused his attention on buildings, landscaping, and other amenities that benefited him and those with whom he was close; in the process, he neglected many of the nuts-and-bolts of College administration. Breuder and his friends spent lavishly at the fancy restaurant he ordered built within months of his arrival on campus. He then had the College pick up the tab. His expensive taste was not limited to the food and wine he frequently consumed at the restaurant he had built. Breuder oversaw reckless spending in multiple areas of the College, usually without any regard for competitive bidding or other good government principles designed to protect the public fisc. 2. Ultimately, Breuder’s poor choices led to a cascade of crises, including a no confidence vote by the College faculty; a critical audit by the Illinois Auditor General of the College’s practices during the Breuder era; and perhaps, most gravely, a decision by the Higher Learning Commission to put the College’s accreditation on probation after closely scrutinizing the 47 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 48 of 78 PageID #:2039 actions of the Breuder administration. Compounding the damaging effect of Breuder’s missteps, local and national media reported widely and negatively on the College, causing significant and lasting damage to the College’s reputation. To top it off, on his way out the door, Breuder refused to comply with investigations of his misconduct and instead destroyed evidence. 3. Therefore, to hold Breuder accountable for the serious harm he caused, the College is compelled to bring these counterclaims for damages. II. JURISDICTION AND VENUE 4. This Court has jurisdiction over the College’s state-law claims pursuant to 28 U.S.C. § 1367, because they are related to the federal claims brought by the Plaintiff and form part of the same case or controversy. 5. Venue is proper in this district pursuant to 28 U.S.C. § 1391(b), because the events giving rise to the claims occurred in this district. III. THE PARTIES 6. Upon information and belief, Plaintiff Robert Breuder is a resident of the Village of Lake Barrington, Illinois. 7. Defendant Board of Trustees of Community College District No. 502, DuPage County, Illinois, is a body politic and corporate organized under the Illinois Public Community College Act. It does business in the Northern District of Illinois. IV. FACTUAL ALLEGATIONS The College of DuPage 8. The College was created on September 25, 1967, and grew substantially through the years. In the 1990’s, the College became the largest single-campus community college in the United States – a distinction it held through 2003. The College remains the largest 48 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 49 of 78 PageID #:2040 community college in Illinois and one of the ten largest community colleges in the country. For decades, the College has ranked as one of the country’s finest community colleges. 9. The College’s district has also grown significantly over the years. Outside of Chicago, the College’s district serves the largest population in Illinois. Its boundaries include parts of Cook and Will counties, in addition to a majority of DuPage County. The College offers 82 total degree programs in 42 different career and technical subject areas. The College also offers close to 178 certificates in 53 different career and technical subject areas. 10. In 2003, Dr. Sunil Chand became the College’s fourth President. Throughout 2004 and 2005, Dr. Chand launched major initiatives for the College’s academic accreditation through the AQIP quality improvement process. Dr. Chand also oversaw the conversion of the curriculum from quarters to semesters, commencing with the Fall 2005 semester. Under Dr. Chand’s watch, the College received a maximum seven year accreditation from the North Central Association of Colleges and Schools Commission on Institutions of Higher Education. Dr. Chand also shepherded a significant building campaign at the College initiated after voters approved a $183 million bond issue in 2002. Despite all of these successes, Dr. Chand was asked to resign by the Board in 2008. When he left Dr. Chand was earning a base salary of approximately $197,000 per year. President Breuder’s Contract 11. On January 1, 2009, Dr. Breuder became the fifth President of the College. His original employment agreement purported to expire on June 30, 2012. It called for an annual salary of $249,000, an automobile allowance of $700 per month, a professional development stipend of $700 per month, 25 days paid vacation, five paid personal days, a housing allowance of $1,500 per month, a retirement investment allowance of $2,075 per month, life insurance of 49 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 50 of 78 PageID #:2041 $500,000, and reimbursement of reasonable moving expenses to the extent Breuder needed to relocate into the College’s district. 12. The contract also called for the automatic extension of Breuder’s employment by one year unless either Breuder or the College provided written notice of its intention to terminate the Agreement at the end of the then-current Agreement term. The purported contract went further, stating: The President will notify in writing the Chairperson of the Board by February 1 of each such year that failure of the Board to give the President notice of intent not to extend the Agreement will extend this Agreement one (1) additional year. The failure of the President to give the written reminder notice to the Chairperson of the Board waives the obligation of the Board hereunder to give its written notice of intent by March 15. The Board’s notice need not be acted upon publicly, but authorization to give such notice will be recorded in the closed session minutes of the Board. 13. On April 16, 2009, after three new members of the Board of Trustees had been voted into office but before they took their seats, the lame duck Board purported to extend Breuder’s contract an additional three years to June 30, 2015. The effect of that purported action was to deny the newly elected trustees any opportunity to act on Breuder’s contract during their entire six year time on the Board. At the time, Breuder had served as President less than four months. He had been in office 106 days. In addition, the lame duck board awarded Breuder a $6,000 per month contribution into a non-qualified deferred compensation plan, retroactive to January 1, 2009. 14. On June 22, 2010 – less than one and a half years into his employment – Breuder was awarded an additional benefit. He purportedly became eligible for an annual “Respite and Renewal Leave” of up to 12 days each year between the end of the Spring Semester and the beginning of the Fall Semester. 50 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 51 of 78 PageID #:2042 15. On July 12, 2011, the Board purported to extend Breuder’s contract to June 16. On October 20, 2015, Dr. Breuder was fired as President of the College as 30, 2016. a result of his poor stewardship. President Breuder’s Responsibilities 17. Breuder’s responsibilities as President were to serve as the Chief Executive Officer of the College. His responsibilities included to have charge of the administration of the College under policies established by the Board, direct and assign, place and transfer all employees in accordance with Board policy and organize and administer the affairs of the College as best serves the College consistent with Board policy while exercising his reasonable discretion. 18. The College’s Administrative Policy 15-205 spelled out other of the President’s responsibilities, which included the following: The primary responsibility of the President is to provide the leadership that enables the College to establish and achieve to the extent possible its philosophy, mission and vision, and goals as approved by the Board of Trustees in accordance with applicable provisions of the Illinois Public Community College Act, 110 ILCS 805/1 et seq. The specific duties of the President directly relate to the internal operation of the College and the College community at large. The President may delegate responsibilities as appropriate. The President is responsible to the Board of Trustees for preparing, recommending, and executing Board policies, and for implementing the procedures in support of these policies. The President may delegate responsibility as deemed appropriate. The President will: 1. Conduct strategic planning activities, including coordinating the development and execution of a strategic long range plan. 2. Identify the educational needs of the College and develop programs and curricula to meet those needs. 51 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 52 of 78 PageID #:2043 3. Review and evaluate College programs, services and employee performance on a continuing basis. 4. Recommend personnel actions including employment, retention and dismissal of employees to the Board, unless the Board has conferred the authority to the President. 5. Direct the financial and physical operations of the College. 6. Maintain accreditation from the Higher Education Commission of the North Central Association of Colleges and Schools. 7. Prepare and submit reports required by local, state and national agencies. 8. Direct and coordinate aspects of student life and development. 9. Provide leadership to College personnel by maintaining a high degree of professionalism, implementing sound and just policies, and promoting employee morale. The President will make reasonable effort to influence the attitude of the community toward the College and to maintain the good will of the various constituencies in the College District. See Administrative Policy 15-205 (2009 ed.), attached hereto as Exhibit A. 19. Breuder had a fiduciary duty to the College. He owed the College his utmost candor, care, loyalty, and good faith at all times. Breuder’s Construction Campaign 20. Breuder began his term with an aggressive new building campaign, making plans to erect new buildings within months of arriving on campus. Those buildings included the Culinary Institute and the Homeland Security Center. 21. The Culinary Institute and the Homeland Security Center were just the beginning. During his time at the College, Breuder spent over half a billion dollars on construction at the College. This was on top of the hundreds of millions that had been spent at the College by his predecessor to refurbish the College. It was also at a time when Breuder was overseeing tuition 52 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 53 of 78 PageID #:2044 increases and significant cost-cutting at the College. In fact, between 2009 and 2015 tuition during the Breuder-era rose approximately 30%. Since Breuder has left the College, tuition has generally decreased. 22. Breuder’s construction campaign was filled with waste, favoritism, and 23. Breuder did not undertake any bid process to choose the architects and excess. general contractors for the Culinary Institute, or the Homeland Security Center, and he generally followed that same practice throughout his spending of over a half billion dollars. Breuder was neither an architect nor a contractor. Nevertheless, Breuder personally selected the architects and general contractors for both the Culinary Institute and the Homeland Security Center, and that remained his practice throughout his time at the College. 24. Breuder had other favored vendors who he personally selected for projects without soliciting bids, or considering cost, or comparing performance against other potential vendors. Breuder’s friend, Carla Burkhart, was among those who benefited from Breuder’s favoritism. Breuder steered multiple contracts to Burkhart and her business, Herricane Graphics. When complaints were raised about her performance by College personnel, Breuder would often arbitrate the disputes and side with Burkhart. As he did with other favored vendors, Breuder hosted Burkhart for costly meals at the Waterleaf and expensive outings to Max McGraw, a private hunting club of which he was a member. He billed the College (and, at times, its fundraising arm, the Foundation) for all of it. Just a few examples: in March 2012, Breuder hosted Burkhart and the College’s then-attorney at Max McGraw at a cost of close to $1200 paid for by the Foundation; and in March 2014, Breuder hosted Burkhart again at Max McGraw with others for a total cost of close to $1300 charged to the Foundation. Charging the College and Foundation for such 53 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 54 of 78 PageID #:2045 excursions – to the extent they were discussing business – was an example of Breuder’s waste and failure to safeguard the College’s funds. No reason existed why the College’s business could not have been conducted in the President’s office or at an on-campus coffee shop or at some other inexpensive location. 25. Breuder also awarded contracts to those who donated to the College. For instance, a PAC he ordered set up to help persuade voters to pass the 2010 bond referendum received donations from architects, general contractors, and others who received contracts from the College. Breuder also awarded contracts to many architects, general contractors, and others who served on the College’s Foundation. These links -- together with Breuder’s penchant for eschewing Requests for Proposal or competitive bids that are otherwise standard in the industry - created a culture of “pay to play” at the College. In a similar vein, Breuder became involved in the Lincoln Foundation and expended College funds and time on Lincoln Foundation events. Breuder then caused the College to pay for the Lincoln Foundation to pay for a review of the College, without telling the College of his own ties to the Lincoln Foundation. Critical media coverage of these practices caused further embarrassment to the College and, ultimately, was one of the reasons outside examinations of the College by the Illinois Auditor General and the Higher Learning Commission occurred. 26. Breuder micro-managed the construction projects he initiated. Breuder’s oversight of construction extended to his demand that he personally approve every change order on construction jobs. As a further example, Breuder oversaw every detail of the Waterleaf Restaurant within the Culinary Institute, and spent excessively in doing so. For instance, among other things, he made the final decision on the flatware used, the expensive paintings on the walls, 54 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 55 of 78 PageID #:2046 and even the width of the foam in the seat cushions. Cost was not an issue – despite the fact that Breuder was running a taxpayer-funded College. 27. Another example of Breuder’s excess and waste was his plan to retrofit a locker room in the new Physical Education Center from a family locker room to one that only he and senior management would have access to. Retrofitting the locker room to meet Breuder’s needs cost the College over $15,000. 28. Landscaping projects were another area on which Breuder focused. The College spent lavishly on landscaping during Breuder’s time at the College. Millions and millions of dollars were ordered spent by Breuder, again without a recognition that the College was a taxpayer-funded institution and not a private enterprise. As an example, Breuder personally ordered that a retention pond be landscaped in order to enhance the view of patrons at the Waterleaf. The cost of beautifying the pond to meet Breuder’s desires well exceeded $100,000. As another example, Breuder demanded the construction of floating gardens at one of the College’s retention ponds identical to those he had seen at a Disney property. These floating gardens needed to be handmade, at a cost to the College of over $12,000. Breuder personally approved the change order. 29. Adding expensive sculptures to the campus landscape was another area on which Breuder focused. Breuder directed the creation and placement of multiple expensive sculptures around campus at a cost of hundreds of thousands of dollars. 30. Ultimately, all of this excess and waste was paid for by the public and resulted in less Foundation dollars available for legitimate uses like student scholarships. 55 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 56 of 78 PageID #:2047 The Waterleaf 31. Breuder initially touted the Culinary Institute and, more specifically, the Waterleaf restaurant as a “living lab” for students. Breuder also initially represented that students in the culinary program would operate the Waterleaf restaurant full-time. Approximately a year later, after the College had already begun to build the Culinary Institute based on those representations, Breuder changed his mind. Students were relegated to working at the Waterleaf a few days a week on the least busy customer days. Contrary to Breuder’s earlier expressed plans, professional staff and chefs were hired to run the Waterleaf full-time. No longer was the Waterleaf a laboratory for culinary students. Instead, it became a place for its biggest client – Robert Breuder – to wine and dine his friends and colleagues. 32. The Waterleaf opened for business in Fall 2011. From its opening until Breuder went on medical leave in April 2015, he personally charged the College over $100,000 for lunches and dinners he hosted at the Waterleaf. Breuder dined regularly at the Waterleaf when he was in town. He also set the tone for a culture that encouraged others to dine at the Waterleaf on the College’s dime as well. Rather than meet College personnel in the College cafeteria for an inexpensive meal or pay for a meal himself, Breuder wasted College funds by regularly dining at the Waterleaf with other College personnel and billing the College for his meals. At times, he had both lunch and dinner there on the same day. He always sought reimbursement for it – including for the alcohol he regularly consumed at the Waterleaf – although such requests were neither reasonable nor in line with College policy. Ultimately, the cost of Breuder’s food and drink was borne by taxpayers and students. 56 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 57 of 78 PageID #:2048 33. College personnel did not ordinarily seek reimbursement for meals when on campus prior to Breuder’s arrival. College policy generally forbade such reimbursement. When Breuder got to campus, he eliminated the policy. 34. In all, Breuder and other College employees under Breuder’s direction charged the College over $250,000 for lunches and dinners at the Waterleaf. Ultimately, the IRS concluded that many of those expenditures by Breuder and other College personnel constituted income (and not a justifiable business expense) and required payment of taxes on that income. The College ended up paying those taxes. 35. Local media reported on Breuder’s extravagant spending at the Waterleaf, damaging the College’s reputation with stories of Breuder’s waste and abuse. Those media reports included mention of i) a holiday dinner on December 6, 2013, for the College’s then board of trustees for $2,331 that featured 12 bottles of wine costing over $700; ii) a holiday dinner the next night for the College’s top administrators for $3,572.40 that featured 18 bottles of wine (including 6 bottles that cost over $100 each); iii) an April 2013 lunch with “elected officials” for $389, which included a $54 bottle of wine; and iv) a wine cellar that contained over $250,000 in wine. 36. The Culinary Institute cost over $25,000,000 to build. Breuder used some funds from the 2002 bond referendum to pay for the Culinary Institute – despite the fact that the taxpayers who approved the 2002 referendum never specifically authorized such a building project. 37. Once in operation as a for-profit restaurant, the Waterleaf lost millions of dollars during the Breuder era. The losses would have been more severe had the Waterleaf paid rent, utilities, insurance, or other expenses like other for-profit restaurants. Instead, the College absorbed those costs. 57 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 58 of 78 PageID #:2049 38. The Culinary Institute also housed a small, six room hotel named the Inn at Waters Edge. Despite the fact that Breuder lived less than an hour from campus, he stayed at the Inn at Waters Edge 17 separate times from October 24, 2013, to September 14, 2014. He charged the College for each of those stays, at a cost of $1,531.80, despite the fact that such spending did not conform to College policy. 39. Breuder’s excessive spending was not limited to the Waterleaf. He also spent over $100,000 of College of DuPage Foundation funds from a “Leadership Cultivation Account” that was set up just for him when he came to campus. The Foundation collaborates with the College to raise money for College student scholarships. But much of the over $100,000 spent by Breuder was not for fund-raising – it was for food and drink with trustees and College administrators; liquor for other functions; and membership at the Max McGraw Wildlife Foundation, a private hunting club in suburban Dundee. The College itself paid for tens of thousands of dollars of Max McGraw expenses during his time at the College, despite the fact that such payments were not part of his employment agreement and did not conform to College policy. Breuder’s misuse of Foundation funds and expenditures at Max McGraw resulted in further embarrassment to the College, as stories about the spending appeared in the local media. Breuder’s Electioneering 40. Almost immediately after his arrival on campus, Breuder began to strategize about a 2010 bond referendum to raise funds for the building campaign he wanted to initiate. Ultimately, Breuder sought a $168 million bond referendum from District 502 voters that he shrewdly billed as a “no-tax-rate-increase bond proposal.” Left unsaid was that rejection of the bond referendum would almost certainly have resulted in a reduced tax bill for most, if not all, of 58 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 59 of 78 PageID #:2050 the taxpaying residents of the District – a material omission that Breuder never corrected in the campaign messaging he orchestrated. 41. Throughout the campaign for the 2010 bond referendum, Breuder engineered an effort to bypass Illinois state law and College policy by impermissibly using College funds to campaign in favor of the referendum. 42. In February 2010, Breuder, without Board approval, authorized the retention of Unicom Arc, a referendum consulting firm. Unicom thereafter conducted a telephone survey of registered voters. The survey asked voters their position on a possible bond referendum and whether voters would support or oppose a referendum. The purpose of the Unicom survey was (i) to gauge the likelihood of voter approval of a bond referendum, and (ii) to gather information to craft the College’s theme and message during the community engagement campaign in support of the referendum. 43. In April 2010, the College and Unicom began to negotiate a contract for Unicom’s consulting services. As part of the negotiation, the College and Unicom discussed the services that were essential to a successful referendum. 44. On May 20, 2010, Breuder requested the board of trustees’ permission to enter into a consulting contract with Unicom for $38,250, plus reasonable out of pocket expenses, and an option to extend the engagement for an additional two months for $25,000. Ultimately, the College paid Unicom over $81,000, much of which was not authorized by the Board. 45. Unicom’s work included polls of registered voters, consulting, and tracking surveys to gauge the success of the referendum campaign. 46. In addition to hiring Unicom, Breuder caused the College to hire Michael Walters Advertising to assist in helping the referendum succeed. In its presentation to Breuder’s 59 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 60 of 78 PageID #:2051 staff, Michael Walters Advertising discussed extensively ways “to guarantee public opinion is in our favor.” 47. On August 26, 2010, Breuder requested and received authorization from the board of trustees to hire Michael Walters for services not to exceed $149,650. Funds paid to Michael Walters were spent to influence the outcome of the election. College funds were used for the distribution of literature in areas most likely to vote in favor of the referendum, for direct mail pieces sent to “targeted” households, for radio spots, and for a campaign management fee. Although the board of trustees had not given him authority to do so, Breuder authorized spending an additional $165,000 to Michael Walters for additional direct mail to “targeted” households. This surgical outreach constituted campaigning by the College, as the mailing deliberately targeted individual voters rather than simply educating the electorate more generally. These expenditures were not approved by the board of trustees until almost a month after services were rendered when Breuder presented a “project scope change” of $165,000 for services already rendered by Michael Walters. 48. Breuder also set up a PAC to engineer support for the referendum, and he placed College personnel in leadership positions at the PAC. Despite knowing that College personnel could not work on campaigns to support the referendum on College time, Breuder listed as the number one objective of one of his employees at the College for 2010 to “successfully pursue a District 502 capital referendum.” 49. Ultimately, the referendum passed. The College thereafter engaged in an extensive building campaign, during which millions of dollars of bond proceeds went to projects not identified as part of the referendum effort. 60 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 61 of 78 PageID #:2052 50. In late 2014 and early 2015, Breuder again impermissibly used College funds to influence an election. In December 2014, Breuder caused the College to conduct a Community Pulse Survey. The survey was conducted to determine whether negative publicity the College had endured from Breuder’s conduct would have an effect on voters in April 2015. The College spent approximately $8,600 on the survey. 51. Breuder used the results of the district-wide survey to develop and mail postcards to the entire district. In total, Breuder directed the preparation and mailing of four postcards to every resident within the College’s district, at a total cost of $166,708. It was very unusual for the College to send these types of postcards, because they were sent district-wide and messaged within a month of the upcoming board of trustees election. Breuder caused a budget transfer from the College’s contingency fund to pay for several of the postcards, and also requested from Catherine Brod that the Foundation pay for some of the cost of the postcards. She agreed to do so. 52. The first postcard, entitled, “Why is COD the Fastest Growing Community College,” was mailed district-wide on March 18, 2015, at a cost to the College of $41,677. The next postcard was mailed district-wide on April 1, 2015, just six days before the election. Both postcards attempted to convey to voters that everything was fine at the College and to divert voters’ attention from the investigations and media scrutiny that resulted from Breuder’s failures. Breuder E-mail Embarrasses the College 53. In 2014, Breuder was attempting to secure $20 million in funding from the State of Illinois. Then Governor Quinn had planned to speak at the College’s commencement that Spring. In anticipation of Governor Quinn’s arrival, Breuder was thinking of ways to publicly press Governor Quinn for the $20 million in state funding which had not yet been distributed to 61 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 62 of 78 PageID #:2053 the College. Breuder strategized with his board of trustees on ways to influence then Governor Quinn in an internal e-mail to College trustees – all the while acknowledging that the College did not have a present need for the funding: I am in a bit of a quandary. We have been working with the Governor’s Office (seemingly forever) to secure our $20 million. Initially the money was to be used for our Homeland Security initiative. When we accomplished our Homeland agenda without state funding, we changed the focus to building demolition. With that initiative soon to be history we need an alternative. I needed to identify a project that would help release our state funding. My idea: a Teaching and Learning Center. Several Board members want to weigh in on the need for such a facility. I have no problem with that; however, not being able to say how we would use the state’s money (perhaps no real need) could lessen our chances to break the money loose at this time (the political moon is rising). A building that focuses on teaching and learning is politically attractive; more so than let’s say a student center, PE facility, etc. At COD, general purpose classroom space is our greatest need. (See attached Board agenda item.) A need that will expand with continued enrollment growth. My having to dance around the issue of how we would use the money attenuates our ask. When I introduce Governor Quinn at commencement, I want to help our cause (getting the $20 million released sooner rather than later) by thanking him for his commitment in front of 3,500 people. There are many voters in our District. Please keep November 4 in mind. The limited state dollars for capital projects will go somewhere in this heightened political season. Why not College of DuPage? In the attached press release you can see how I have had to dance around how we would use the money. It was a less effective quote than it could have been. And lastly, who better to know what physical space needs we have than the people who deliver services every day? There is always the option of telling the Governor we want the money, will bank it until we figure out how to use it, and then build something. And is it not better to match money than to provide 100%? Bottom line, I need some room to breathe on this matter so I can enhance the likelihood we get the $20 million, soon. Thanks. B 54. The e-mail became public. As a result, Governor Quinn cancelled his appearance at commencement, the College did not get the remaining $20,000,000, and the College was publicly embarrassed by Breuder’s actions. 62 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 63 of 78 PageID #:2054 The College’s Poor Financial Controls 55. One of the byproducts of Breuder’s fixation on construction and development was that he neglected to oversee key parts of the College’s financial affairs. Internal controls broke down, policies were violated, and no changes were made when problems were identified. 56. As President, Breuder was required to direct the financial and physical operations of the College. He had the ultimate responsibility for the financial operation of the College. More specifically, he had the ultimate responsibility for establishing and maintaining an internal control structure designed to ensure that the assets of the College are protected from theft, or misuse, and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with Generally Accepted Accounting Principles. 57. In multiple separate episodes, the College’s internal controls failed under Breuder’s watch – resulting in losses to the College of millions of dollars. 58. In 2015, John Valenta was arrested by the DuPage County State’s Attorney’s Office as a result of his use of a fictitious vendor that he controlled to fraudulently bill the College over $400,000. Despite that fact, Breuder failed to tighten the College’s internal controls to ensure that such a scheme could be prevented in the future. 59. Even after the Valenta scheme came to light, Breuder failed to require the strengthening of internal controls at other auxiliary enterprises, such as the Waterleaf. One of the problems that surfaced from the investigation of the WDCB fraud was that the same person ordered, accepted delivery, and inventoried the equipment purchased. The same failure to separate duties existed at the Waterleaf, and that problem persisted after Valenta’s scheme was finally discovered. 63 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 64 of 78 PageID #:2055 60. Further accounting irregularities existed at the Waterleaf due, in part, to the Waterleaf’s refusal to use an accrual method basis for accounting – despite the recommendations of its internal auditor to do so. 61. Breuder also oversaw – through his handpicked Treasurer, Tom Glaser – the investments of the College. The College’s investment policy was governed both by Illinois law and by College policy. 62. The College’s investment policy provided clear limits on the types of investments in which the College was permitted to invest. The policy also provided for the limits, if any, on each type of investment. As an example, the College’s investment policy permitted investments in local government investment pools, provided that (i) the pool was rated in one of the two highest rating categories by at least two of the three nationally recognized agencies; and (ii) no more than 5% of the College’s investment portfolio can be invested in a single fund. 63. In April 2014, the College invested $10,000,000 in the Illinois Metropolitan Investment Fund. By September 30, 2014, the College’s investment in IMET had grown to over $80,000,000. 64. The College’s $80,000,000+ investment in IMET violated College policy in at least two ways. First, the investment substantially exceeded the 5% limit in a single fund. Second, the fund was not rated by two rating agencies. 65. On or about October 8, 2014, Breuder’s Treasurer, Tom Glaser, was notified of a default on certain loans within IMET caused by fraud. The College’s pro rata share of the loss as a result of the fraud was over $2,220,000. Had the College complied with College policy, the loss would have been approximately $381,000. Thus, the failure of Breuder and his team to comply with College policy resulted in a potential loss of over $1,800,000. 64 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 65 of 78 PageID #:2056 66. Breuder did not advise the Board of the loss until over one month later. He sought to downplay the loss, assuring the Board falsely that the loss “has nothing to do with our internal controls.” 67. Breuder asked the College’s internal auditor to examine the College’s investments in the wake of the IMET fraud. But Breuder continued to downplay the violations, comparing them to “a pimple on the ass of an elephant.” The internal auditor’s report nevertheless found multiple violations of the College’s investment policy – not only as it related to the IMET fraud. 68. A subsequent analysis of the College’s investments as of September 30, 2014 found that, under Breuder’s watch, $198,097,322 of the College’s $274,142,423 in funds as of September 30, 2014, were invested in violation of the College’s policy. Freedom of Information Act Requests 69. One of the duties of any public institution is to comply with Freedom of Information Act requests from the public. 70. The College received an increasing number of FOIA requests in 2014 and 2015 as scrutiny of the College increased and as Breuder’s time at the College came to an end. 71. Some of the requests sought information concerning communications involving Breuder and other information related to Breuder’s activities at the College. 72. Breuder interfered in the gathering of material in response to such FOIA requests, resulting in the production of fewer documents to FOIA requestors than were actually responsive to the requests. The College Faculty Association Passes a “No Confidence” Resolution against Breuder 65 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 66 of 78 PageID #:2057 73. A college’s faculty is a necessary and important part of any institution of higher learning. 74. In September 2014, the College’s Faculty Association overwhelmingly passed a “No Confidence” resolution calling on the board of trustees to seek new leadership for the College. It was the first time a COD faculty had passed a “no confidence” resolution against its President. 75. The resolution criticized Breuder for, among other things, (i) failing to “establish fiscal priorities that are consistent with the College’s mission to educate and a respect for the College’s responsibility to the taxpayers;” (ii) lacking integrity; and (iii) failing to treat everyone with “respect and dignity."” 76. The resolution identified multiple failings of the Breuder presidency, including: fail[ing] to establish fiscal priorities that are consistent with the College’s mission of educating the District 502’s residents and a respect for the College’s responsibility to the taxpayers and students. [Breuder] has squandered large portions of $550 million dollars slated to renovate and rebuild the College over the last six years by spending money on projects not associated with the academic mission of the College. These vanity projects diverted funds needed to renovate and expand the classrooms and spaces related to the academic mission of the College. [Breuder] shifted 30 million dollars from the reserve fund, built up from deliberately underspent operational budgets, to build a Teaching and Learning Center. He did so to attempt to “shake loose” 20 million dollars more in previously promised but undelivered State funding. [Breuder] has authorized extensive non-native and non-sustainable landscaping on campus because he claims, without support, that this is the best way to attract new students to campus. No cost benefit analysis was done before this authorization nor has one been done since. As a result of the massive planting of non-native species on campus and the destruction of the College’s natural prairie spaces, upkeep of the campus has become very labor intensive with the need to constantly mow, water, and prune 66 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 67 of 78 PageID #:2058 non-native species and plant large numbers of annuals each year. This expensive and time consuming upkeep will need to continue into the future. Our natural areas allowed the College to conserve on spending in the past and he has destroyed this possibility for the future without any rational explanation or justification. Without faculty input and without regard for campus needs, he commissioned a 29 foot waterfall sculpture from John Medwedeff for a total cost of $500,000. . . .[The waterfall] clearly fails to serve the needs of the students who are more concerned with tuition and expenses than with decorative waterfalls. [Breuder] installed a campus wide irrigation system in order to water nonnative plants and trees. In 2012, water budget was at least $100,000 to maintain non native plants. [Breuder] spent millions of Facility Referendum revenue to build, decorate and equip Waterleaf Restaurant and its wine cellar. The for-profit restaurant does not support the academic mission of the College and competes directly with local restaurants. He built and furnished a Boutique Hotel that competes with comparable local hotels with below market prices. The hotel serves no educational purpose. Under his direction, the Berg Instructional Center [BIC] architect announced to an internal visioning committee made up of faculty and administrators, that money is to be redirected from the BIC plan and be re appropriated into Culinary and Hospitality buildings. As a result, the BIC building, which contains the largest percentage of classroom and faculty office spaces on campus, had to change its plans for classroom, faculty, and departmental renovations, because money was siphoned off to pay for massive changes to the Culinary and Hospitality buildings, including the building of Waterleaf restaurant and the Boutique Hotel. Because of his poor planning, money diversion, and lack of faculty input, there is now insufficient classroom space during peak class hours. Under his direction, the presidential suite has been remodeled twice and expanded in size at great expense. This suite serves no academic function. Breuder has treated has treated classroom space as an afterthought and failed to understand its importance to students and faculty. He has stated in an article in The Community College Journal that was excerpted in the Community College Times that his “solvency plan includes raising tuition, growing enrollment and cutting expenses by replacing full-time faculty with parttime adjuncts.” 67 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 68 of 78 PageID #:2059 He spent an additional $2,207,750 to install a waterfall on Compass Hill after it had been recently re-landscaped. He has behaved repeatedly in a way that has caused negative national attention to be brought to the College. July 25, 2014 Inside Higher Education’s lead headline was “A careless email has cost one community college president $20 million, and potentially saved Illinois taxpayers that same amount.” The article details the fallout from his May 9, 2014 email to the board. He has made numerous inappropriate comments in media indicating that he is completely out of touch with current standards of professional courtesy and decency. The Courier quotes him defending the money he spent on the campus appearance, saying to a Student Leadership Council Representative: “If I was a guy looking for a lady, I’m going to make that judgment call before I even go over to talk to her.” (Courier, Sept 14, 2012) He is quoted swearing in a widely distributed and read national publication of higher learning. The article, about the email of May, 2014, quotes him saying “[But] if you build...you’re shit out of luck.” The national embarrassment of the underhanded nature of the email is compounded by the inappropriate profanity. (Inside Higher Ed. July 25, 2014) Over the course of his employment at the College of DuPage, Dr. Breuder has demonstrated a pattern of behavior that seriously draws into question his commitment to the College’s core ethical values of honesty, integrity, respect, and responsibility. Individual faculty members, staff, board members, students, and citizens of the district have publicly commented about being treated by him with a lack of respect and dignity. Dr. Breuder neither understands nor respects the unique culture of community colleges and has, through his actions shown that he does not understand the Community College mission of the State of Illinois. He does not foster excellence in academic programs. Dr. Breuder has shown a total lack of respect for the history, culture, and the core ethical values and mission of the College of DuPage and its community by systematically destroying and replacing them with his preferences and vanity projects. 77. The no confidence decision concluded by stating that “We the faculty of the College of DuPage feel a responsibility to the taxpayers to protect their investment in the College. We respect the families who have sacrificed so much to support the College and we believe that 68 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 69 of 78 PageID #:2060 they deserve to see the traditions of the community college mission respected. Many of the families in this community struggle to meet their responsibilities and have been justifiably upset by what they’ve seen as a squandering of their hard-earned money by Dr. Robert L. Breuder. As with any investment there has to be a return on the investment; money earmarked for education cannot and should not be squandered. We want the college to achieve excellence in all it does to serve students and community and in order to do that, priorities need to be established consistent with the College’s educational mission and the taxpayers’ trust.” A full copy of the College Faculty Association’s Resolution of No Confidence, dated September 10, 2014, is attached hereto as Exhibit B. 78. The College faculty’s no confidence vote demonstrated that Breuder’s decisions at the College were, to an important constituency, deeply unpopular and troubling. The no confidence vote reflected that Breuder had failed in his duty to maintain a high degree of professionalism and promote the morale of the College faculty. The Higher Learning Commission Places the College on Probation after Scrutinizing Breuder’s Conduct 79. One of Breuder’s responsibilities as President was to “maintain accreditation from the Higher Education Commission of the North Central Association of Colleges and Schools.” 80. On May 5, 2015, the Higher Learning Commission sent Breuder a letter notifying him that “information outlined in media reports calls into question whether the College continues to meet the Commission’s Criteria for Accreditation.” A copy of that letter is attached hereto as Exhibit C. The HLC wrote further that it planned an immediate on-site evaluation. Until that evaluation concluded, the HLC told Breuder that “the pending action to reaffirm the institution’s accreditation has been placed on hold.” Id. 69 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 70 of 78 PageID #:2061 81. In July 2015, representatives from the HLC visited the College and spoke with representatives from the College. The HLC also reviewed documents and other material it received from the College. The HLC examined conduct that occurred at the College during Breuder’s time as President. Breuder, who at the time was on leave, refused to participate in an interview with the HLC. 82. In December 2015, the HLC issued a report highly critical of the College’s performance during the Breuder era. The HLC placed the College on probation for two years because it found the College was “out of compliance” with the Criteria for Accreditation and Core Components” identified in the HLC’s findings. A copy of the HLC’s findings is attached hereto as Exhibit D. Specifically, the HLC found the College out of compliance with the following: The institution operates with integrity in its financial, academic, personnel, and auxiliary functions; it establishes and follows policies and processes for fair and ethical behavior on the part of its governing board, administration, faculty, and staff. The institution’s governance and administrative structures promote effective leadership and support collaborative processes that enable the institution to fulfill its mission. 83. The HLC also found that the College met “with concern” the following criteria: The institution’s mission demonstrates commitment to the public good. The governing board is sufficiently autonomous to make decisions in the best interest of the institution and to assure its integrity. The institution’s degree programs are appropriate to higher education. The institution demonstrates responsibility for the quality of its educational programs. 84. Breuder’s oversight of the College caused the HLC to send the College a letter in May 2015 and undertake an investigation. That investigation resulted in the College’s 70 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 71 of 78 PageID #:2062 placement on probation, which negatively affected the College’s reputation. Since the College’s placement on probation, enrollment has dropped at the College. 85. The damage to the College from the HLC’s investigation and placement of the College on probation has been significant. 86. A new President started at the College in July 2016. Through her leadership and the hard work of many others at the College, the College was removed from probation status in 2017. The Illinois Auditor General Analyzes Breuder-era Practices and Makes 19 Separate Recommendations 87. In May 2015, the Illinois House of Representatives passed House Resolution No. 55, which asked the Auditor General to review various practices of the College from 2009 to 2014 – all during the Breuder-era. 88. In September 2016, the Illinois Auditor General released its report. In it, the Auditor General was highly critical of multiple practices of the Breuder-era administration – particularly around College investments, procurement, and contracting – and made 19 recommendations to the College for improvement. 89. Among the Auditor General’s findings were the following: The College could not provide documentation to show that the Board was evaluating the President’s performance annually, as is required by Board policy and the President’s employment agreement. The College could not provide documentation to show that the Board was receiving quarterly investment reports or that the College was annually reviewing its investments as required by Board policy. The need for budget transfers was not always clearly documented and there was not always proper and timely approval of budget transfers by officials. Procurements did not always comply with established requirements. 71 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 72 of 78 PageID #:2063 Between 2007 and 2013, the College of DuPage issued a total of $366.46 million in bonds ($321.84 million for construction and $44.62 million for refunding bonds). Oversight of construction activities could be improved by: i) establishing a facilities/construction committee and requiring status reports at regular meetings; ii) Obtaining Illinois Community College Board (ICCB) approval of construction projects prior to the award of contracts and construction of projects as is required by ICCB’s administrative rules (23 Ill. Adm. Code 1501.602(b)); iii) Documenting competitive procurement exemptions for construction projects; iv) Establishing a written policy for the types of work classified as professional services; v) Establishing a prequalification system for potential bidders; and vi) Approving and signing contracts prior to beginning work. For the peer group, the College of DuPage President had the highest total compensation for all four years reviewed, ranging from $466,477 in FY2011 to $495,092 in FY2014. The College of DuPage Board of Trustees awarded the outgoing President a lump sum severance payment of $762,868 in January 2015. Only 3 of 16 presidents at the other community colleges we reviewed received a lump sum payment upon separation, ranging from $380,245 (Moraine Valley) to $103,269 (Morton College). 90. The Auditor General made 19 specific recommendations to the College. Those recommendations included the following: The College of DuPage should consider updating its Administrative Procedures Manual to require the Treasurer’s Advisory Committee to meet on a regular basis. The College of DuPage Board of Trustees should ensure that required investment reports are provided to the Board and that these reports contain the information required by policy to enable the Board to effectively monitor the College’s investments. The College of DuPage should ensure that budget transfer files clearly document the need for the transfer and include proper and timely approval by officials. The College of DuPage Board of Trustees should also consider receiving regular, more detailed reports of budget transfers; changing its policies to limit the President’s and/or Controller’s authority to approve budget transfers; and defining “cabinet officer” in the Board policies. The College of DuPage should establish a central repository for all contracts entered into by the College. 72 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 73 of 78 PageID #:2064 The College of DuPage should update policies and procedures to reflect the bid process, including any electronic approvals, and ensure that policies and procedures are being followed; document the bidding process, including the bid opening or why procurements are not required to be bid; and maintain a signed copy of the contract or agreement in the procurement file. The College of DuPage Board of Trustees should ensure that bids are opened publicly by a board member or board employee as is required by the Illinois Public Community College Act; and the Board approves all procurements over $25,000 or $50,000 for construction as is required by Board policy. The College of DuPage Board of Trustees should competitively procure all bond advisory services or document in Board minutes why the services were exempt from competitive procurement; and approve all contracts for bond services. The College of DuPage Board of Trustees should obtain ICCB approval for applicable projects prior to beginning construction activities on projects as is required by ICCB’s administrative rules. The College of DuPage Board of Trustees should follow the procedures established in the College Administrative Procedures Manual for procurements that require a high degree of skill and thoroughly document why construction manager contracts would qualify as exempt from College policies and the Public Community College Act. The College of DuPage should also consider establishing a contractor evaluation process in order to document that a satisfactory relationship exists for exemptions under the Local Government Professional Services Selection Act. The College of DuPage Board of Trustees should consider establishing, by written policy, the types of procurements that could be classified as professional services that require a high degree of skill and may be exempt from bidding. The College of DuPage should consider establishing a system that prequalifies potential contractors and vendors according to work type and size of project The College of DuPage should document the bidding process and ensure that bids are publicly opened by a member or employee of the Board; and the College of DuPage Board of Trustees should approve all final construction contracts and amounts prior to work beginning. The College of DuPage should ensure that all contracts are signed and executed prior to beginning work on the project. The College of DuPage Board of Trustees should comply with the Open Meetings Act, including the public recital requirement, in all future final actions related to employment contracts. 73 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 74 of 78 PageID #:2065 91. The College suffered damage as a result of the Auditor General’s audit. The College paid for the cost of the audit, including the cost of the audit and significant and lasting reputational harm. Breuder’s Destruction of Evidence 92. In Spring 2015, the College received subpoenas for documents in connection with both federal and state criminal investigations. As part of the process of preserving potentially relevant material, a document “hold” memorandum was sent to senior management at the College, including Breuder. That memorandum instructed senior management, including Breuder, to preserve documents potentially responsive to the subpoenas. The memorandum specifically directed senior management to preserve electronic data, and specifically required senior management to preserve documents kept on portable devices. 93. On April 27, 2015, Breuder signed the acknowledgement of receipt of that memorandum, in which he acknowledged that he had received and reviewed the memorandum and committed to follow all instructions and directives contained in the memorandum. 94. A few days later, on or about April 28, 2015, Breuder requested that a College employee come to his home to retrieve his College-issued iPad. They made plans for Breuder to relinquish his College-issued iPad on April 29, 2015. At the time, Breuder had gone on medical leave. 95. On the evening of April 28, 2015, while the iPad was in Breuder’s control, the iPad was restored to factory settings, which deleted all electronically-stored information on the iPad. 96. The next morning, the College employee went to Breuder’s Lake Barrington home and retrieved the wiped iPad. 74 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 75 of 78 PageID #:2066 COUNT I Breach of Fiduciary Duty 97. The College incorporates the foregoing allegations here. 98. As the Chief Executive Officer of the College, Breuder owed a fiduciary duty to the College. 99. Breuder breached his duties to the College in multiple ways, including by placing his own interests above those of the College, by supporting and engaging in reckless spending of College funds, and by destroying evidence. 100. As a direct and proximate cause of Breuder’s conduct, the College has been harmed. That harm has resulted in economic and non-economic damages. Those damages include, but are not limited to, the payments the College has made to deal with investigations by the Illinois Auditor General, the Higher Learning Commission, and the Internal Revenue Service. The damage also includes the funds the College did not receive from the State of Illinois as a result of Breuder’s conduct. The damage also includes the funds recklessly spent by Breuder for his own benefit and not for the benefit of the College. The damage also includes the reputational damage the College has suffered from the HLC’s placement of the College’s accreditation on probation, the stories in the news media about Breuder’s abuses, and the investigations that arose from Breuder’s conduct. That reputational damage resulted in a drop in enrollment after the Breuderera abuses came to light. COUNT II Breach of Contract 101. The College incorporates the foregoing allegations here. 102. The College maintains that Breuder’s contract with the College is void ab initio because the term of the contract extended past the tenure of the executing Board of Trustees; 75 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 76 of 78 PageID #:2067 because the supermajority termination provision in the contract violated the Public Community College Act; and because the provisions for extending the contract violated Illinois’ Open Meetings Act. To the extent, however, that Breuder’s contract is found not to be void in whole or in part, Breuder’s repeated misconduct constituted breach of contract in multiple ways. 103. As discussed more fully supra, Breuder’s wasteful and reckless spending, destruction of evidence, electioneering, violations of FOIA, and neglectful financial oversight violated his duties to the College as set out in College policy, the President’s job description, and section D of his employment agreement. Furthermore, Breuder’s actions constituted a breach of the agreement and cause for termination under the employment agreement sections G(f)(i) through (iv). 104. The College has suffered damages as a direct and proximate result of Breuder’s breach of the employment agreement, including but not limited to compensatory damages and reputation damages. COUNT III Conversion 105. The College let Breuder use a College-issued iPad, which contained College 106. Breuder caused the information on the iPad to be destroyed. 107. The College had the right to immediate possession of the iPad, and its full 108. Breuder’s intentional destruction of the contents of the iPad constituted 109. The College was damaged by Breuder’s actions. The College suffered both property. contents. conversion. economic and non-economic harm. 76 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 77 of 78 PageID #:2068 PRAYER FOR RELIEF WHEREFORE, Defendant / Counter-Plaintiff requests judgment in its favor and against Plaintiff / Counter-Defendant, as follows: a. Compensatory damages in the nature of restitution, in an amount to be determined at trial, but no less than $25,000,000; b. Punitive damages; c. Attorney’s fees, costs, and expenses; d. Prejudgment interest; and e. To grant further relief as this Court should find just and proper. JURY DEMAND Defendant Board of Trustees requests a trial by jury on all issues so triable. Dated: June 29, 2018 Respectfully submitted, BOARD OF TRUSTEES OF COMMUNITY COLLEGE DISTRICT 502 /s/ Andrew Porter Andrew C. Porter Kaitlin G. Klamann DRINKER BIDDLE & REATH LLP 191 North Wacker Drive, Suite 3700 Chicago, Illinois 60606 (312) 569-1000 Andrew.porter@dbr.com Katie.klamann@dbr.com Attorneys for Defendant Board of Trustees 77 Case: 1:15-cv-09323 Document #: 170 Filed: 06/29/18 Page 78 of 78 PageID #:2069 CERTIFICATE OF SERVICE I hereby certify that on June 29, 2018, I caused copies of the foregoing DEFENDANT BOARD OF TRUSTEES’ ANSWER AND AFFIRMATIVE DEFENSES TO PLAINTIFF’S COMPLAINT AND COUNTERCLAIMS to be served on all counsel of record by filing electronic copies with the Clerk of the Court using the CM/ECF system, which will send notification of such filing to all registered CM/ECF users. /s/ Kaitlin G. Klamann 78